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Wednesday, June 15, 2022

House seeks criminal prosecution of Godwin Emefiele for disbursing N15.5 trillion fraudulent loans to Buhari regime

The House noted that Mr Emefiele had allowed borrowings to the Buhari-led federal government far above the threshold allowed by the CBN Act.

• June 15, 2022
Speaker Gbaja, Godwin Emefiele, and President Buhari
Speaker Gbaja, Godwin Emefiele, and President Buhari

The House of Representatives on Wednesday asked President Muhammadu Buhari to sack Central Bank governor Godwin Emefiele for violating the provisions of the CBN Act 2007. 

The parliament also urged Attorney General  Abubakar Malami to immediately prosecute Mr Emefiele for violating the CBN Act.

This followed the adoption of a motion by a lawmaker, Sergius Ogun, representing Esan North-East/South-East Federal Constituency, of Edo State, at plenary.

The House had during plenary noted that the Buhari-led federal government had borrowed a total of 2.4 trillion naira, from the CBN, within the first six months of 2022. 

The lawmakers said the fund is far above five per cent of the FG’s revenue for 2021, which stood at N3.9 trillion.

They also expressed worries about the rising debt profile of the Buhari government, which stands at N33.31 trillion as of March 2021. 

The House explained that the owing excluded the N15.51 trillion debt of the government to the CBN, already profiled to the Debt Management Office.

According to them, Section 38 of the CBN Act provides that loans shall be repaid by the FG the same financial year it was granted.

However, the lawmakers stressed that since the government had failed to repay the first loan as stipulated, the power of the CBN to grant such loans to the FG should not have been exercised. 

They also noted that the total borrowings of the FG from the CBN under Mr Emefiele in the past six years have been a flagrant breach of section 38 of the financial institution Act 2007.

The House directed the Committee on Banking and Currency to ensure compliance and report back to the parliament within four weeks.

Mr Emefiele had been in the eyes of the news after the CBN governor showed interest in politics, with the aim to contest the presidential primary of the All Progressives Congress (APC). 

His involvement in politics had drawn condemnations with experts saying such brazen partisanship could jeopardise the integrity of the country’s financial system. 

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