The Senate yesterday approved the request of President Muhammadu Buhari to restructure the N22.7 trillion Ways and Means loan advanced to the Federal Government by the Central Bank of Nigeria (CBN).
The Ways and Means provision allow the Federal Government to borrow short-term or seek emergency finance from the CBN to fund delayed government’s expected cash receipts of fiscal deficits.
Since the government started experiencing a significant shortfall in revenue, it has relied heavily on the apex bank to finance its expenditure programmes.
The funds advanced to the Federal Government under the Ways and Means provision stood at N22.7 trillion as of December 19, 2022. Buhari had last year requested the Senate to approve his proposal to securitise the loan but the Red Chamber rejected the request, citing lack of details.
Buhari had appealed to the Senate to reconsider its stand, insisting that failure to grant the securitisation approval would cost the government about N1.8 trillion in additional interest in the year.
Senate President, Ahmad Lawan, after the approval of the President’s request, noted that the Ways and Means Advances was a global practice. SOURCE: THE NATION
