Reactions As Buhari Seeks N1trn Cash Advance From CBN

A Muhammadu Buhari on Wednesday asked the Senate to consider and approve the advance of N1trillion to the Federal Government by the Central Bank of Nigeria (CBN).

The President also urged the Senate to approve N819,536,937,813.00 as Supplementary Appropriation Bill for 2022.

The President’s requests were contained in two letters read by Senate President Ahmad Lawan at plenary.

Buhari in his letter titled: “Restructuring of Ways and Means Advances” wrote: “The Ways and Means Advances by the Central Bank of Nigeria (CBN) to the Federal Government has been a funding option available to the Federal Government to cater for short term emergency finance to fund delayed government expected cash receipts or fiscal deficits.

“The Ways and Means Balances as at 19th December 2022 in the sum of N22,719,703,884,306.90 is hereby attached as annexture one.

“The detailed breakdown of the additional N1trillion to be advanced by the CBN is attached as annexture two.

“I have approved the securitization of the Ways and Means Balances along the following terms: Amount – N23, 019, 703,774,306.90; Tenor -40 years; Moratorium of principal repayment – three years and Interest rate – nine per cent.

“Consequently, your concurrence and approval is hereby sought to allow for the implementation of same.”

On the 2022 Supplementary Budget, President Buhari said: “The country has witnessed the worst flood incident in recent history which has caused massive destruction of farmlands at a point already close to harvest season.

“This may compound the situation of food security and nutrition in the country.

“The flood also devastated the road infrastructure across the 36 states and the FCT that affected several sections of major roads and bridges nationwide that are critical for movement of goods and services.

“The water sector was equally affected by the flood and there is the need to complete some ongoing critical projects that have achieved about 85 per cent completion.

“The nine critical projects proposed in the sector cuts across water supply, dam and irrigation projects nationwide.

“I have therefore approved a Supplementary 2022 Appropriation of N819,536,937,813, all of which are capital expenditure.

“The supplementary budget will be financed through additional domestic borrowings. This will raise the budget deficit for 2022 to N8.17trillion and deficit to GDP ratio to 4.43 per cent.”

Lawan referred the two requests to the Committees on Appropriation, Finance, Works, Water Resources and Agriculture for further legislative work.

He added that the joint committee should invite the Minister of Finance, CBN, ministers of Agriculture and Water Resources to “ensure that we get the right information.”

NAN