President Muhammadu Buhari has replied the allegations leveled against his government by the former Central Bank Governor Lamido Sanusi II who accused him of illegally overdrawing money from the country’s central consolidated account.
The Presidency said the Emir of Kano, Lamido Sanusi, spoke out of ignorance. The Emir accused the Buhari administration of violating Section 38 (2) of the CBN Act.
“CBN claims on the FGN now tops 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 5 per cent of last year’s revenues.”
Sanusi also attacked the federal government’s plan to borrow $30 billion from foreign lenders to fund the budget and build infrastructure. He said no one will lend Nigeria money at a time it is operating five different tiers of foreign exchange rates.
President Buhari responded through his media aide, Garba Shehu, on Saturday night, saying the former CBN governor “doesn’t have his facts as far as those issues are concerned.”
The president admitted that he ordered a massive borrowing from the CBN, but said the limit had not been pushed.
“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”
The response was posted by Mr. Shehu on his Twitter page, and 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 money in excess the amount he mentioned in the Treasury Single Account, TSA.”
“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”
“Would any bank manager lose their sleep over this?”
On August 24, a week before Nigeria officially slipped into recession, the emir had blamed the economic crisis on the incoherent policies of the federal government.