Buhari urges Senate to approve restructuring of CBN N22trn loans

President Muhammadu Buhari on Tuesday urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN).

Buhari spoke in Abuja while signing the 2023 N21.83 trillion budget as passed by the National Assembly into law.

Senate had last week rejected the request by the President to restructure the N22.7tn Ways and Means advances collected by the Federal Government from the Central Bank of Nigeria (CBN).

This was in response to the letter transmitted to the National Assembly by the President seeking restructuring of the N22.7tn Ways and Means advances collected from CBN within the last ten years in addition to N1tn to be collected as fresh domestic loan.

However, speaking at the signing of the eighth and final annual budget of his administration, the President said the request would enable the government to meet some obligations.

He added that failure of the National Assembly to grant the approval would cause the government about N1.8 trillion in additional interest in 2023.

“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings”, Buhari said.

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“I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.

“Failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitised debt of the Ways and Means”, he added.

The President also accused the National Assembly of inflating the executive budget proposal by about N1trillion naira for additional revenues and unfunded deficit.

He, however, said his signing of the budget as passed by the National Assembly was to enable speedy implementation especially as his administration draws to an end.

”It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.

“We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.

”The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion.

”I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion”, the President concluded.

By Ambali Abdulkabeer

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