President Bola Tinubu has asked the Nigerian Senate to urgently approve the securitization of the outstanding debit balance of N7.3 trillion in the consolidated revenue fund.
The president sought this approval in a letter read at the floor of the Senate by Senate President Godswill Akpabio during plenary on Saturday.
The president in his letter said although the federal government is considering various measures to forestall the use of ways and means advances for domestic debt servicing, it has however become highly imperative to securitize the outstanding ways and means advance to the federal government before the end of 2023.
Tinubu said his request is in line with the Provision of Section 38 of Central Bank Of Nigeria Act 2017 which grants temporary advances to federal government to fill up budget deficit.
He said data from the CBN indicates that the consolidated revenue fund stood at N7.3 trillion as at December 11 2023, largely due to domestic debt servicing, principal and interest.
Tinubu emphasized that the securitization of the ways and means will lead to realization of the several benefits including the reduction of debt service cost as the interest rate for the securitized ways and means advances is loawe at 9 percent per Annum, and improvement in debt transparency.
The president added that the savings arising from the lower interest rate will reduce the deficit in the budget.
“In view of the foregoing, the Senate is invited to consider and approve securitizatiin of the outstanding debit balance of N7.3 trillion in the CNRF as at December 11 2023”, the letter read.