Nigeria’s Debt: N22.7trn CBN’s ‘Ways and Means’ loan to FG suffers at Senate
The request by President Muhammadu Buhari for restructuring of N22.7trillion “Ways and Means” of the Central Bank of Nigeria (CBN) loaned to the Federal Government may be suffering resistance from the upper chamber of the National Assembly, the Senate, as the request was not again considered among matters mentioned at plenary on Wednesday.
This is coming at a time the upper chamber is planning to embark on recess until after the General Elections.
‘Ways and Means’ are loan advances by the CBN to the Federal Government to enable it cater for short-term or emergency finance to fund delayed government expected cash receipt of fiscal deficits.
Buhari’s request was tendered before the dual chambers of the National Assembly, the Senate and the House of Representatives in December 2022 for expeditious consideration, the President warning that refusal to pass the N22.7 trillion Ways and Means restructuring request will further worsen Nigeria’s debt profile with the risk of incurring additional N1.8 trillion debt.
The payment of N23.7 trillion “Ways and Means” was secured from CBN in the last 10 years.
Buhari’s request may be suffering setback as details requested by the Senate on how the loans were expended and for what purposes, appeared not have been supplied by the appropriate executive authorities.
Indications that the request may be suffering resistance emerged when again it was observed its consideration was not on the order of mention for plenary on Wednesday.
The Senate had requested a breakdown on how the money was spent and for what purpose, as part of its consideration to grant or throw out the request.
The President of the Senate, Senator Ahmad Lawan, had last week Tuesday said that the Senate was ready to approve the request, provided required details of the spendings were made available by the Finance Minister, Zainab Ahmed, and Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele.
The Senate and the House of Representatives would have adjourned plenary on Thursday last week till after the Presidential and National Assembly election, but had mentioned the matter of restructuring of the N22.7 trillion Ways and Means request, pending before the two chambers.
“We must have necessary information for passage of the N22.7 trillion Ways and Means Restructuring request as time is not on our side in the Senate now in view of coming general elections.
“If there is need for the Senate to sit up to Friday (last week) for thorough consideration and passage of the request, it will be done.
“But the affected officials from the executive must also expedite action on provision of required information as regards documents authorising approval and disbursement of the monies totalling N22.7 trillion,” the Senate President had said last week.
However, at Wednesday’s plenary the matter was still not presented for mention for consideration.
