The House of Representatives approved an additional N1 trillion in Ways and Means advances on Thursday for the execution of the National Assembly’s 2022 Supplementary Appropriation Act.
The clause on Ways and Means authorizes the government to borrow from the Central Bank of Nigeria (CBN).
This followed the Committee on Supply’s examination 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, placed before it by its Chairman, James Faleke.
The House also agreed to securitize the complete outstanding Ways and Means sum under the following terms: sum (N23,719,703,774,306.90), Tenure (40 years), Principal Repayment Moratorium (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.
