Reconsider Your Decision on CBN Loan, Buhari Tells Senate

Barely a week after the National Assembly rejected President Buhari’s request to restructure the N23.7tn Ways and Means advances, the President has urged the National Assembly to reconsider their decision.

The President made the appeal when he signed into law the 2023 Budget of N21.83tn along with the 2022 Supplementary Appropriation Bill, the eighth and final budget of his regime, Investors King understands.

Buhari made it clear that he had no intention to circumvent the NASS’ powers to interrogate the process as he beseeched the legislature to reconsider its position on his proposal.

“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.

”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 securitisation 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 40-year repayment period on the securitised debt of the Ways and Means,” the President explained.

He thanked the National Assembly for approving his request for an extension of its validity date to March 31, 2023 as he stressed that failure to grant the securitisation approval, would cost the government about N1.8tn in additional interest in 2023 and a 40-year repayment period on the securitised debt.

Buhari who signed the 2023 transition budget at the Council Chambers of the Presidential Villa, Abuja, in the presence of Vice President Yemi Osinbajo, Senate President Ahmed Lawan, Speaker of the House of Representatives, Femi Gbajabiamila and other members of the Federal Executive Council, also directed the Ministry of Finance, Budget and National Planning to work towards early release of the 2023 capital votes to enable ministries, departments and agencies commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigeria