The House of Representatives has approved the request by President Muhammadu Buhari to restructure the N22.7 trillion loan from the Central Bank of Nigeria (CBN) extended to the federal government under its Ways and Means provision.
The Ways and Means provision allows 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.
The President had in December 2022, asked both chambers of the National Assembly to approve his proposal, but the lawmakers who had promised to consider the request before proceeding for the election break, did not list it for consideration during plenary in January.
Presenting the report at the Committee of the Whole at plenary, the relevant committees said, “the House do consider the Report of the Committees on Finance, Banking and Currency and Aids, Loans and Debt Management on the Restructuring of Ways and Means Advances and approve the recommendations therein (Laid: 2/5/2023), approve the requested additional N1trillion Ways and Means advances for the implementation of the 2022 Supplementary Appropriation Act as passed by the National Assembly.
“Approve the securitisation of the total outstanding Ways and Means amount under the following terms: amount N23,719,703,774,306.90, Tenor 40 years Moratorium on Principal Repayment 3 years, pricing/Interest Rate 9 per cent per annum.”
The federal government had said it would repay the loan, which as at December 2022 stood at N22.7 trillion with securities such as treasury bills and bonds issuance.
Writing by Ibrahim Shehu; Editing by Muzha Kucha and Adeniyi Bakare