President Muhammadu Buhari urged the National Assembly on Tuesday to reconsider its stance on his proposed securitisation of the N22.7 trillion overdrafts at the Central Bank of Nigeria, indicating that interrogation of the composition of the loans can be done after granting approval.
Ahmad Lawan, president of the Senate, however, insisted that proper verification of Executive’s submissions on the Ways and Means balance would be done before the National Assembly can approve it.
The National Assembly had last week rejected Buhari’s request to restructure the loans obtained from the CBN.
Lawan, who was responding to Buhari’s budget speech at the signing ceremony of the 2023 budget, said although the National Assembly was trying to consider the request, both the Senate and House of Representatives Committees would ensure that they get the right documents and information that back the claims by the Executive Arm before approval.
Speaking earlier, Buhari had said the Ways and Means balance has accumulated over several years and represented funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.
Buhari said he had no intention to fetter the right of the National Assembly to interrogate the composition of this balance, but expressed fears that “failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3 percent and the negotiated interest rate of 9 percent and a 40year repayment period on the securitised debt of the Ways and Means”.
But Lawan, while fielding questions from State House Journalists, revealed that the lawmakers were already considering the government proposals.
“But let me tell you where the problem is. While we are trying to consider and pass the request, we will insist on getting the right documents for our committees to ensure that whatever they advise us to do in the two chambers is based on information and knowledge and not just passing Ways and Means without knowing what it is,” he said.
Lawan, while speaking on the reform in the financial sector, lauded the early submission of the Medium-Term Expenditure Framework and Fiscal Strategy Paper, the budget, and the finance bill for passage.
“I think it is a worthwhile development that should be continued. We haven’t done as we would have wished to do. But I think at the risk of sounding immodest, the 9th National Assembly has passed the Medium-Term Expenditure Framework and Fiscal Strategy Paper, the appropriation bill, and the finance bill, at normal times,” he said.
He expressed hopes that the implementation of the 2023 budget will start as soon as possible, saying: “Time is of essence, and the main reason for passing the budget at record time is to ensure implementation in good time.
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“We have also increased the duration, the life of the 2022 Appropriation Act, to end on the 31st of March, 2023, and we believe that the simultaneous implementation of the 2022 appropriation bill, including the supplementary, and of course, the 2023 Appropriation Act, should be done in such a way that the economy of this country will be reflected before the next government comes in.”
The Senate President said both chambers of the National Assembly “will ensure that we get revenues, we find more sources, better sources, stabilise resources and of course, look into some of the legislations and some of the waivers and concessions granted to see whether or not they deserve to continue to be implemented in a manner they were approved. Or we need to reverse that because we need money in our country.”
“But that is not to say that we should raise taxes that will be out of the roof as to cause problems for our citizens. But I believe that as a National Assembly, in the next five months, we must be looking at increasing the funds available to the government and also ensuring that the deficit budget is minimised in the next Assembly by the grace of God,” he added.
