Emmanuel OchayiThe Federal Government has embarked on a significant audit of the N22.7 trillion Ways and Means loan sanctioned during the previous administration of President Muhammadu Buhari.
The announcement came from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the Public Wealth Management Conference held in Abuja on Tuesday, February 20, 2024.
Edun, addressing attendees including Vice President Kashim Shettima and other top officials, outlined the imperative of scrutinizing the loan details to ensure fiscal prudence. “We have to stem liquidity… The ways and means have to be tailed down and eliminated,” Edun stated, emphasizing the need to curtail excessive borrowing.
Regarding the surging food and commodity prices inherited by the current administration, Edun affirmed the government’s commitment to tackling inflation and mitigating the populace’s hardships. “We are not unaware of the sufferings of Nigerians,” he said, underscoring the interventions planned to alleviate the situation, such as the release of substantial grain reserves.
The audit initiative follows a Senate approval in May 2023 to restructure the N22.7 trillion loans extended to the government by the Central Bank of Nigeria (CBN) under the Ways and Means provision. This provision permits borrowing from the CBN for short-term or emergency financing needs, particularly to cover delayed government cash receipts.
With concerns over fiscal discipline and economic stability, the audit signifies a proactive step by the current administration toward financial accountability and effective management of national resources. A
s Edun outlined plans for revenue enhancement and expenditure reduction, the government aims to navigate the economic landscape with prudence and responsiveness to the needs of the Nigerian populace.
The audit findings, once released, are expected to shed light on the utilization of substantial loan amounts and pave the way for informed policy decisions aimed at fostering sustainable economic growth and development.
