CBN loans hits N23.7tr as Reps approve N1tr Buhari’s request

The House of Representatives on Thursday approved an additional N1 trillion Ways and Means advances for the implementation of the 2022 Supplementary Appropriation Act as passed by the National Assembly.

The Ways and Means provision allows the government to take loans from the Central Bank of Nigeria (CBN).

This followed the 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 laid by its Chairman, James Faleke before the Committee on Supply.

The House also 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)

President Muhammadu Buhari had in December last year, written to seek the House for approval for the advance of the N1 trillion from the Central Bank of Nigeria’s Ways and Means.

Buhari, in the letter, said the Ways and Means Advances by the Central Bank of Nigeria to the Federal Government has been a funding option to cater for short-term or emergency finance to fund delayed government expected cash receipt of fiscal deficit.