Buhari writes Senate, seeks restructure of N23.7trn Ways and Means Advances

Ahead of the last legislative day for 2022, Senate receives communication from President Buhari requesting restructure of N23.7trn Ways and Means Advances and N819.5 billion Supplementary Budget; President of the Senate pledges consideration along with the 2023 N20.51 trillion 2023 Appropriation Bill during Thursday’s plenary

 

 

 

President Muhammadu Buhari has written the Senate, seeking its approval to restructure N23.7 trillion Ways and Means advances given to the federal government by the Central Bank of Nigeria (CBN).

In a letter read on Wednesday, during plenary by the President of the Senate, Ahmad Lawan,  the President noted that Ways and Means are advances from the CBN to the federal government for emergency funding of delayed receipt of fiscal deficit.

The letter titled: “Restructuring of ways and means advances” reads in part, “The ways and means advances by the Central Bank of Nigeria, to the federal government have been a funding option to the federal government to cater for short-term or emergency finance to fund delayed government expected cash receipt of physical deficit.

The ways and means balance as of 19th December 2022 is  22.7 trillion naira. I  have approved the securitisation of the ways and means balances along the following terms ÷ Amount. N23 .7 trillion, Tenure  40years, Moratorium on principal repayment, three years, Pricing interest rate 9%. Your concurrence and approval is sought to allow for the implementation of same.”

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For expeditious consideration, the President of the Senate 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 in plenary on Thursday, along with the N20.51 trillion 2023 Appropriation Bill and other critical issues.

“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, Ministers 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 Committte on Appropriations. We will also receive report on Finance Bill 2022 from our Committee on Finance. We will also receive the report from the Appropriation Committee on the two reports that I have just read.

 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 in order to pass or consider the report,” he said.