CBN, NNPC now act as separate govts under Buhari, PDP Govs cry out

By theGazetteNGR

Editorinchief

Posted: June 15, 2021 at 8:37 AM, Updated: September 21, 2022 at 7:46 AM

PDP governors said in a statement that states should now have a vote in determining operational expenditures in order to enhance openness and accountability among government entities.The Peoples Democratic Party (PDP) Governors’ Forum has attacked the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Corporation (NNPC), and other government institutions for how they handle the country’s resources.

The CBN has been chastised for behaving like a separate government under President Muhammadu Buhari’s administration, despite its autonomy.

According to the governors said that instead of being the last resort, the financial regulator has become a full funder of government activities.

â€œA 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‘.

The critique of the apex bank occurred during the Governorsâ€™ Forum meeting in Uyo, Akwa Ibom, on June 14, 2021. The governors stated the CBN has gone beyond control to the degree that the monetary body now makes a public threat to state governments

â€œCBN has become such an octopus that it threatens State governments
publicly, without decorum, about sanctions on any attempt to question
its MODUS OPERANDI,â€ the governors declared in a communiquÃ© published at the end of their meeting.

The state governors also recommended that the apex bank take quick action to stop the Naira’s devaluation.

The management of finances by the NNPC was also discussed at the meeting, with PDP governors claiming that the government-owned oil firm now decides whether to remit or not remit into the federation’s account.

They claim that the NNPC’s unlawful action is limiting the amount of money available to state and local governments, limiting their potential to generate jobs.

The forum, led by Sokoto State Governor Aminu Tambuwal, stated that the Corporation has no authority to decide how much to spend, how to spend it, or â€œhow much to remit to the Federation Accountâ€ in violation of the law and spirit of the 1999 Constitution.

PDP governors said in a statement that states should now have a vote in determining operational expenditures in order to enhance openness and accountability among government entities.

Other agencies that are statutorily required to make contributions to the Federation Account, such as the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Communication Commission (NCC), the Federal Inland Revenue Service, Customs and Excise, and others, were told to do more.