Senate Gives Conditions For Reconsidering Buhari’s N23.7trn Loan Restructuring

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Nigerian Senate has given President Muhammadu Buhari-led executive arm of the government conditions to meet for them to reconsider the proposed borrowing of loan.

President of the Senate, Ahmad Lawan, said certain conditions must be met for the National Assembly to reconsider the government’s ways and means of borrowing from the Central Bank of Nigeria

Lawan gave the conditions on Tuesday in Abuja while fielding questions from State House reporters after President Muhammadu Buhari had signed into law the 2023 Appropriation Bill along with the 2022 Supplementary Appropriation Bill.

President Muhammadu Buhari had penultimate week asked the Senate to restructure the Ways and Means advances to raise the amount to N23.7 trillion with a tenor of 40 years, three years moratorium on repayment, and an interest rate of nine per cent.

The Ways and Means provision allow the government to borrow from the apex bank if it needs short-term or emergency finance to fund delayed government expected cash receipts of fiscal deficits.

However, the Senate had last Wednesday rejected the request of the President to restructure the N22.7 trillion loans the CBN extended to the federal government under its Ways and Means provision.

Since the government started experiencing a significant shortfall in revenue, it has relied heavily on the central bank to finance its expenditure programmes via Ways and Means which balance as of December 19, 2022 stood at N22.7 trillion.

President Buhari, while speaking after signing the 2023 budget, urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means balance at the CBN.

Correspondent at Prime Business Africa | + posts

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.