Chaos erupted in Nigeria's House of Representatives on Wednesday as opposition parties walked out over a bill to increase ways and means cash advances from 5% to 10%. The bill faced strong opposition after an amendment to lower the percentage was rejected, highlighting deep fiscal policy divides.
In a dramatic turn of events on Wednesday, the House of Representatives descended into chaos over a contentious bill proposing to raise the Central Bank of Nigeria's (CBN) ways and means cash advances from 5% to 10%. The legislation, which aims to expand the government’s borrowing capacity, faced intense opposition, leading to a dramatic walkout by opposition members during the plenary session.
The uproar began when Kingsley Chinda, the Minority Leader, proposed an amendment to reduce the advance limit to 2%. This proposal was swiftly rejected, prompting a coordinated exit by opposition parties. The current law caps these advances at 5% of the previous year's federal revenue, a threshold the new bill seeks to double.
The walkout highlights the deepening rift between the ruling party and opposition members over fiscal policy. Opposition leaders argue that increasing the ways and means limit could exacerbate Nigeria's already substantial public debt and undermine economic stability. They also criticize the lack of consultation and debate on such a significant change to the nation’s financial regulations.
In response, government representatives defended the bill as a necessary measure to bolster the government's financial flexibility in the face of economic challenges. They argue that the increase is crucial for addressing urgent funding needs and maintaining economic stability.
