On Saturday, President Muhammadu Buhari, said Lamido Sanusi, the Emir of Kano’s accusation of illegally overdrawing the country’s central consolidated account, against the present government was made ignorantly.
The domiciled account, at the Central Bank of Nigeria, has been reported to have been overdrawn to the tune of N4.7 trillion by the Administration of Buhari; which is seen by the traditional ruler to contradict the Section 38 (2) of the CBN Act.
Mr. Sanusi said: “CBN claims on the FGN now top N4.7 trillion — equal to almost 50 per cent of the FGN’s total domestic debt.”
He also said: “This is a clear violation of the Central Bank Act of 2007 (Section 38.2) which caps advances to the FGN at 5 per cent of last year’s revenues.”
Also the plans of the administration to borrow $30 billion from foreign lenders to fund the budget and build infrastructure was also countered/opposed by Mr. Sanusi. He said no one will lend Nigeria money as it operating on five different tiers of foreign exchange at the time.
Mr. Buhari said the former CBN governor “doesn’t have his facts as far as those issues are concerned.” responding through his media aide, Garba Shehu, on Saturday night.
The president said the limit has not been pushed admitting that he ordered a massive borrowing from the CBN.
“The issue in CBN, that government has overdrawn its Central Consolidated Account is true, but the overdrawing is within limits.
“The overdraw does not exceed 1.5 trillion. It is incorrect to say, as he did that the account was overdrawn by 4.5 trillion,” he said.
Mr. Shehu via his Twitter page, posted the response in which he said the government still had sufficient fund in the treasury single account to clear its loan from CBN.
“But even assuming that he was correct, this is a govt that has excess money in the Treasury Single Account, TSA more than the amount he mentioned.
“It is just like you, a bank customer operating two accounts, one in the red & the other, well funded to the point that it can at any time wipe the indebtedness on the other.” Mr. Buhari said.
“Would any bank manager lose their sleep over this?”
However, it is said that Sanusi, had been attacking the economic policies of the Buhari’s administration for sometimes now.
Reports also said that Sanusi had on August 24, which also was coincidentally a week before Nigeria officially slipped into recession, blamed the economic crisis on the undefined policies of the federal government, and warned that the Buhari administration if not careful may end its reign as same or almost same as President Goodluck Jonathan.