CBN now “Father Christmas” – PDP Governors

Governors of Peoples Democratic Party (PDP), the opposition party, on Monday said that some government agencies and the Central Bank of Nigeria (CBN) were operating outside the law that established them as revenue generating agencies and the country’s monetary authority, respectively.

Godwin Emefiele, CBN Gov

The governor met at the Akwa Ibom State government house in Uyo, over what they described as the worsening economic, political, security and social state of affairs in Nigeria.

They accused some Federal Government agencies of contributing to the poor living conditions of citizens.

In a 14-point communique they issued after their meeting, the governors said some government agencies and the Central Bank of Nigeria (CBN) were operating outside the law that established them as revenue generating agencies and the country’s monetary authority, respectively.

The governors said the CBN had become a “father Christmas” as it allegedly “creates” and spends money without control or supervision.

At the meeting presided over by Governor Aminu Tambuwal of Sokoto State and chairman, PDP Governors Forum, the governors also called out other revenue generating agencies for not doing enough to help the federal government generate revenue.

The PDP governors called on, “…agencies of Government such as Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Communication Commission (NCC), Federal Inland Revenue Services, Customs and Excise and similar organisations that are statutorily required to make contributions into the Federation Account, to do more. The federating States should, going forward now have a say in the determination of operating costs to ensure transparency and accountability. The meeting called for urgent steps to reverse these ugly trends in our practice of democracy, constitutionalism and Federalism.

The governors also, “expressed deep concerns on the operational system and methods of the Central Bank of Nigeria (CBN). It viewed with regrets that the CBN is operating as an independent government within a Government, which is a pervasion of the autonomy of the Bank. A situation where CBN creates money, decides how much of it to spend, on what to spend it on without any form of controls or supervision is patently subversive of our constitutional order. It has become not just a LEVIATHAN, but also a father Christmas of sorts, dabbling into every sphere and scope of governmental activity, not just as a lender of last resort, but as a full executing agency of government. The meeting observed that the CBN has become such an octopus that it threatens State governments publicly, without decorum, about sanctions on any attempt to question its MODUS OPERANDI. The CBN should take immediate steps to halt the depreciation of the Naira.”

The communiqué noted that, “The PDP Governors frowned at the rising and seemingly uncontrollable debt profile of Nigeria with over 80% of normal Appropriation spent on debt servicing. All the gains of the PDP Government under Chief Olusegun Obasanjo, GCFR, where Nigeria exited its foreign debt obligations has been destroyed. Borrowing for frivolous items such as funding the Nigerian Television Authority is scandalous. Money should only be borrowed for productive purposes as Nigeria’s current debt of over N36 Trillion Naira is becoming clearly unsustainable relative to our earnings and GDP. We should not saddle incoming generations with undue debt burden. The borrowing spree of the APC administration if unchecked, will certainly lead Nigeria into avoidable bankruptcy.

“The Forum reiterated its call, which seem to have fallen on deaf ears, for the Revenue Mobilisation, Allocation and Fiscal Commission to URGENTLY SEND the revised Revenue Allocation Formular to Mr President for onward transmission to the National Assembly for enactment, such that more resources are made available to States and Local Governments where ordinary Nigerians reside. It called on the Chairman and Members of the Commission to RESIGN or be relieved of their duties, if they cannot discharge this sacred constitutional duty entrusted by the Nigerian people to it. The present constitutional amendment process should make the Commission more independent and accountable to all stakeholders.”

The PDP governors also declared support for ongoing calls for the implementation of judicial and legislative autonomy.