Emmanuel Ochayi
President Bola Tinubu has urged the House of Representatives to approve the securitization of the outstanding debit balance of 7.388 trillion Naira in the Consolidated Revenue Fund (CRF).
This initiative, outlined in a letter read by Speaker Tajudeen Abbas, aims to address the burgeoning domestic debt servicing while highlighting several compelling benefits.
Join our WhatsApp Channel“Securitization of the Ways and Means will lead to the realization of many benefits,” affirmed President Tinubu. “This action is essential given the current status of the Consolidated Revenue Fund.”
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Tinubu underscored the importance of adhering to Section 38 of the Central Bank of Nigeria’s Act 2007, emphasizing that while the government is exploring strategies to curtail the use of Ways and Means advances for domestic debt servicing, urgent action is necessary before the year’s end.
“In light of these circumstances, the securitization of the outstanding Ways and Means will yield multiple advantages,” stated Tinubu. “This includes reducing debt service costs with a lower interest rate of 9% p.a. compared to the prevailing MPR-3%, thereby potentially mitigating the deficit in the national budget.”
The move towards securitization not only aims to curtail debt service expenses but also promises to enhance debt transparency.
The President highlighted the importance of integrating securitized Ways and Means Advances into public debt statistics.
President Tinubu concluded by urging the House of Representatives to deliberate on and approve the securitization proposal, emphasizing the critical nature of this financial maneuver for the country’s economic stability and fiscal health.
