Opposition Parties Stage Walkout in House of Representatives Over Ways and Means Bill

 Members of opposition parties in the House of Representatives staged a walkout yesterday during a plenary session over a contentious bill to increase the ways and means cash advances from five to ten percent.

The walkout occurred after a proposed amendment by Minority Leader Kingsley Chinda, which aimed to reduce the advance limit to two percent, was rejected. Chinda's amendment was intended to enhance transparency in federal spending, but it was not accepted by the majority.

The bill, under discussion, proposed increasing the ways and means advances from the current five percent to a new ceiling of fifteen percent. This proposal sparked debate among lawmakers, with the Committee on Finance Chairman, James Faleke, opposing Chinda's amendment. Faleke argued that reducing the limit below five percent would be detrimental to the financial stability of the government.

Ogun State lawmaker Ibrahim Isiaka supported Faleke’s position, suggesting an increase to ten percent. Similarly, former Deputy Speaker Idris Wase moved an amendment to maintain the ten percent limit, a motion which was ultimately favored in a voice vote despite a louder dissent from opposition members.

Deputy Speaker Benjamin Kalu, presiding over the session, explained that the increase was necessary to address the funding gap following the recent rise in the minimum wage. Kalu emphasized the need for additional funds to meet the government’s obligations.

The adoption and passage of the report for third reading proceeded despite the opposition’s walkout. Ways and means is a loan facility through which the Central Bank of Nigeria (CBN) finances federal government budget shortfalls. The current CBN law caps advances at five percent of the previous year’s revenue, a limit that has been breached in practice over the years.

In May 2023, the Senate approved a N22.7 trillion ways and means loan, following a request by former President Muhammadu Buhari to secure the debt. Buhari had warned that failure to approve the loan could result in approximately N1.8 trillion in interest costs.

The increase in the ways and means limit continues to be a point of contention, reflecting broader debates about fiscal policy and government transparency.