The Senate has passed a bill seeking to amend the Central Bank of Nigeria (CBN) Act to increase its advances to the federal government from five per cent to a maximum of 15 per cent.

The bill’s passage followed its presentation and consideration at the plenary on Saturday.

The bill was sponsored by Sen. Gobir Abdullahi (APC- Sokoto).

Section 38 of the CBN Act stated that “Notwithstanding the provisions of section 34(d) of the act, the bank may grant temporary advances to the federal government in respect of temporary deficiency of budget revenue at such rate as the bank may determine.”

It further stated that the total amount of such advances outstanding should not at any time exceed five per cent of the previous year’s actual federal government revenue.

Mr Abdullahi, however, in his lead debate, said: “Mr President, my respected colleagues, permit me to lead the debate on this bill, which seeks to amend the CBN Act to increase the total CBN advances to Federal Government from five per cent to a maximum of fifteen per cent.”

According to him, the bill was read for the first time on May 24.

He said the bill’s essence was to enable the federal government to meet its immediate and future obligation in approving the ways and means by the National Assembly and advances to the federal government by the CBN.

“This amendment is very consequential, and it needs the support of us all; it is to enable the federal government to embark on very important projects that will inflate and rejig the economy.

“I, therefore, urge you all to support the passage of this bill,” he said.

(NAN)