Sanusi lied; CBN’s lending to FG is N1.467 trn – Presidency

Sanusi lied; CBN’s lending to FG is N1.467 trn – Presidency

By Omoh Gabriel, Business Editor LAGOS — New facts emerged yesterday that the CBN advanced the Federal Government the sum of N1.193 trillion as Ways and Means as at 2nd December 2016. Asanusi fact sheet of the accounts of the Federal Government with the CBN, obtained yesterday from Presidency sources disclosed that the Federal Government did not borrow above its limit from the Central Bank of Nigeria, CBN. The Presidency fact sheet showed that inflows into the Federal Government’s Treasury Single Account, TSA, as at December 2 stood at N4.4trillion. The figure also indicated that foreign exchange transfers into the account was N101.7 billion, giving a grand total of N4.574trillion. The fact sheet also showed government spent N1.913trillion. As a result, credit balance in the TSA as at December 2, 2016 was N2.66trillion. Again, according to the fact sheet, money lent to the Federal Government by the CBN through Ways and Means was N1.467trillion, far less than what Sanusi claimed. Former Governor of the Central Bank of Nigeria (CBN) and Emir of Kano, Muhammadu Sanusi II had asserted last week that the account of the Federal Government, domiciled at the Central Bank of Nigeria, is overdrawn to the tune of N4.7 trillion by the Buhari administration. According to the traditional ruler, “CBN claims on the FGN now top N4.7 trillion — equal to almost 50 per cent of the FGN’s total domestic debt. This is a clear violation of the Central Bank Act of 2007 (Section 38.2), which caps advances to the FGN at five percent of last year’s revenues.” CBN-FG relationship His words: “The CBN-FGN relationship is no longer independent. In fact, one could argue their relationship has become unhealthy,” he said.
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