The Africa Network for Environment and Economic Justice has called for an effective legislative framework for utilisation of Special Drawing Rights allocated to Nigeria by the International Monetary Fund.

The Acting Executive Director, ANEEJ, Leo Atakpu, made the call on Wednesday at a three-day capacity building workshop for civil society organisations and media on SDR in Abuja.

SDR is a form of financing instrument that a country gets from the IMF as a member country in times of global financial crisis such as COVID-19.

Mr Atakpu said that ANNEJ, a CSO, organised the workshop in partnership with AFRODAD and Bill and Melinda Gates Foundation to track SDR funds and raising citizens’ voices to end debt crises in West Africa.

“We started the project by conducting a research on the SDR funds utilisation in Nigeria and Ghana including other countries but have cause to invite stakeholders to validate the research findings.

“When we assembled the result, we had every reason to agree that the content of the research was good for us to work with advocacy. Now, we are engaging the media and CSOs to deepen their understanding,’’ he said.

Presenting a paper titled “Utilisation of SDR in Nigeria, Dr Terfa Abraham, an economist and public policy analyst, recalled that Nigeria received the SDR from IMF in August 2021 equating 3.4 billion dollars to increase external reservation.

Mr Abrahim, who is a Senior Research Fellow, National Institute for Legislative and Democratic Studies, said, “The CBN Act 2007, section 8 provides that CBN governor briefs the National Assembly always with regards to its policies and activities.

“Section 24(g) of CBN Act 2007 provides that CBN shall at all times maintain the reserve of external assets consisting of allocations of SDR to Nigeria by the IMF.

“As a sovereign country, Nigeria has the right to use SDR as it deems fit but should ensure that CBN, ministries of finance and industry, trade and investment produce data and avenues for the usage as seen in other climes.

“The funds may end up being used in a manner that may not benefit the public and above all escape oversight from the watchful eyes of the legislators.

“The SDRs came into the country through the CBN; at that point the funds were not appropriated. But the funds were to be used in specific sectors like social investment, education and others which the National Assembly must oversee,’’ he said.

He said in the study conducted by ANNEJ, some stakeholders shared diverse opinions regarding the current update on SDRs utilisation for Nigeria.

He said the study revealed that generally other countries used their SDR to support their budget deficit and strengthen their foreign reserves.

Mr Abraham said evidence showed that Nigeria also used its funds in that direction, stating that the CBN and other agencies needed to explain how SDR funds received in 2021 were used to cushion the effect of COVID-19.

This, he said, would help Nigeria to track the process and come up with advocacy and entry points that could be used to shape and direct how future SDR or related funds from development partners would be utilised.

In his remarks, ANEEJ National Coordinator, Procurement and Advocacy Initiative, Mohammed Attah, said for a long time many countries have been benefiting from the IMF’s SDR without adequate awareness of the citizens who are the end beneficiaries.

According to him, at times, the leadership of every county tends to misuse the SDR to the disadvantage of the people. Hence, he said there is a strong need to create awareness for people to know their rights concerning utilisation.

“Poverty can be traced to it, it is our common wealth deposited by the IMF and in getting it back, we expect that apart from settling our debts at least we should have some kind of social interventions,’’ he said.

Also speaking, President, International Peace and Civic Responsibility Centre, a CSO, Chris Azor, who described the SDR as an asset coming to the Federal Government, said Nigerians needed to know how resources were managed to seek accountability.

“We have seen from other countries such as Ghana, Uganda among others, our government should be transparent and showcase processes of utilising the funds for our benefits,’’ he said.

Nigeria received its first SDRs in the 70s when there was oil glut, recording a second SDR in 1979 during gulf war, economic meltdown in 2009 and in 2021 due to COVID-19.

(NAN)