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Buhari seeks approval for N1tr cash advance

President Muhammadu Buhari has requested the National Assembly to approve his request for a cash advance of N1 trillion to the Federal Government by the Central Bank of Nigeria (CBN).

The president has also urged the Senate to approve N819.53 billion as Supplementary Appropriation Bill for the outgoing year.

Simultaneously, both requests were made yesterday in two letters sent to the two Chambers of the National Assembly and read at plenary by Senate President Ahmad Lawan and House of Representatives Speaker Femi Gbajabiamila.

In his letter titled: “Restructuring of Ways and Means Advances”, Buhari said: “The Ways and Means Advances by the Central Bank of Nigeria (CBN) to the Federal Government has been a funding option available to the Federal Government to cater for short term emergency finance to fund delayed government expected cash receipts or fiscal deficits.

“The Ways and Means Balances as at 19th December 2022 in the sum of N22,719,703,884,306.90 is hereby attached as annexure one.

“The detailed breakdown of the additional N1trillion to be advanced by the CBN is attached as annexure two.
“I have approved the securitization of the Ways and Means Balances along the following terms: Amount – N23, 019, 703,774,306.90; Tenor -40 years; Moratorium of principal repayment – three years; and pricing interest rate – nine per cent.

“Consequently, your concurrence and approval is hereby sought to allow for the implementation of same.”

On the letter of request for the 2022 Supplementary Budget addressed to the Senate President and House Speaker, Buhari said: “The country has witnessed the worst flood incident in recent history which has caused massive destruction of farmlands at a point already close to harvest season.

“This may compound the situation of food security and nutrition in the country.

“The flood also devastated the road infrastructure across the 36 states and the FCT that affected several sections of major roads and bridges nationwide that are critical for movement of goods and services.

“The water sector was equally affected by the flood and there is the need to complete some ongoing critical projects that have achieved about 85 per cent completion.

“The nine critical projects proposed in the sector cuts across water supply, dam and irrigation projects nationwide.
“I have therefore approved a Supplementary 2022 Appropriation of N819, 536,937,813, all of which are capital expenditure.

“The supplementary budget will be financed through additional domestic borrowings. This will raise the budget deficit for 2022 to N8.17trillion and deficit to GDP ratio to 4.43 per cent.”

The two principal Officers referred the letters to the relevant committees in the Red and Green Chambers for further legislative work.

Lawan, urged the relevant joint committees to interact with ministers of Finance, Budget and National Planning, her Agriculture and Water Resources counterpart and the CBN governor to “ensure that we get the right information.”

Writing by Muzha Kucha