The House of Representatives on Thursday approved a one trillion naira loan request by President Muhammadu Buhari from the Central Bank of Nigeria (CBN).
The sum was an additional loan for Ways and Means advances for the implementation of the 2022 Supplementary Appropriation Act as passed by the National Assembly.
Ways and Means was a provision that allowed the government to take loans from CBN.
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The provision came following consideration of the report of the Committee on Finance, Banking and Currency and Aids, Loans and Debt Management on the Restructuring of Ways and Means Advances by its Chairman, James Faleke before the Committee on Supply.
Additionally, the House approved the Securitization of the total outstanding Ways and Means amount under the following terms: Amount (N23,719,703,774,306.90), Tenure (40 years), Moratorium on Principal Repayment (3 years), and Pricing/Interest Rate (9 percent per annum).
In December 2022, Buhari wrote to seek the House for approval for the advance of the N1 trillion from the Central Bank of Nigeria’s Ways and Means.
According to the President’s letter, the Ways and Means Advances by the CBN to the Federal Government had been a laid funding option to cater for short-term or emergency finance to fund delayed government expected cash receipt of fiscal deficit.
