Buhari seeks Senate approval to restructure CBN’s N23.7trn Ways and Means

President Muhammadu Buhari on Wednesday wrote the Senate requesting an approval to restructure N23.7 trillion Ways and Means advances given the Federal Government by the Central Bank of Nigeria (CBN)
In the letter read by Ahmed Lawan, president of the Senate, Buhari said Ways and Means were advances from the CBN to the Federal Government for emergency funding of delayed receipt of fiscal deficit

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The titled “restructuring of ways and means advances”, reads in part: The ways and means advances by the central bank, to the Federal Government has been a funding option to the government to cater for short term or emergency finance to fund delayed government expected cash receipt of physical deficit.

“The ways and means, balances as of December 19, 2022 is N22.7 trillion. I have approved the securitisation of the ways and means balances along the following terms Amount: N23. 7 trillion; Tenure: 40 years, Moratorium on principal repayment, three years, pricing interest rate 9 percent. Your concurrence and approval is sought to allow for the implementation of same”
Lawan later forwarded the request to the Senate committee on finance for report consideration and passage in plenary on Thursday.

He said the request and the N819.5 billion supplementary budget will be considered required passage along with the N20.51 trillion 2023 appropriation bill and other critical ones.

We are referring these letters to our committees on Appropriation, Finance, works, water resources and agriculture today. They have to work on it and ensure that we follow the due processes.

“In that respect, the minister of finance, the CBN, minister of agriculture, water resources and works to be invited and make themselves available for this process and to ensure that we get the right information between today and tomorrow.

“Tomorrow (Thursday) by the grace of God, will be the last legislative day for the 9th senate this year. It will be quite busy for us because we have to receive the report of the 2023 Appropriation Bill from our committee on Appropriations.

“We will also receive a report on the Finance Bill, 2022 from our committee on Finance. Also, the committee on power will be bringing the report on power, so it’s going to be very busy for us. So, we may have to stay here for many hours to pass or consider the report”, he said.