Senate In Chaos Over N23.7 Trillion CBN Loan To FG

The payment of N23.7 trillion in “Ways and Means” obtained from the Central Bank of Nigeria (CBN) in the previous 10 years caused the Senate to be in disarray for several hours on Wednesday.

In order to prevent fights, the Senate’s President, Ahmad Lawan, ordered the Senators to meet behind closed doors after the action.

“Ways and Means” are soft loans or advances by the Central Bank to the Federal Government to enable it cater for short-term or emergency finance to fund delayed government expected cash receipt of fiscal deficits.

[the_ad id=”41445″]

Buhari’s request

Trouble started when the Chairman Senate Committee on Finance, Senator Olamilekan Adeola (APC, Lagos West) came up with a report on Ways and Means 2022, as asked by President Muhammadu Buhari last week.

Soon after the presentation by Senator Adeola, Senator Apiafi (PDP, Rivers West) raised a point of order, with an argument that President Buhari’s request was unlawful and what the Senate was going to do by accepting the request is unknown in Nigerian law.

The President of the Senate declared her out of order, arguing that the committee chairman should first present and read the report before legislators can participate in the discussion.

Sen. Apiafi and a few other Senators were irritated by Lawan’s decision, which created tension in the revered Chamber.

At this time, Senator George Sekibo (PDP, Rivers East) filed a point of order requesting that the Senate President suspend consideration of the report until the Senate has additional information regarding the usage of the monies.

After then, the Senate met behind closed doors.

Recall that President Buhari had, last week, written to the Senate, demanding the approval of restructuring of N23.7 trillion Ways and Means advances issued to the federal government by the Central Bank of Nigeria.

The President in a letter read by Senate President during the plenary session last Wednesday, revealed that Ways and Means are advances from the Central Bank of Nigeria to the federal government for emergency finance of delayed receipt of fiscal deficit.

He claims that the balances for ways and means as of December 19, 2022, are N22.7 trillion.

President Buhari further stated in the letter that he has approved the securitization of the ways and means balances along the following terms: Amount, N23 .7 trillion; Tenure, 40 years; Moratorium on principal repayment, three years and Pricing interest rate 9%.