President Muhammadu Buhari has forwarded to the Senate a request for approval of the restructuring of N23.7trn Ways and Means advances given the federal government by the Central Bank of Nigeria (CBN).
The request was contained in a letter addressed to Senate President Ahmad Lawan and read during Wednesday’s plenary.
President Buhari, in the letter, explained that Ways and Means are advances from the Central Bank of Nigeria to the federal government for emergency funding of delayed receipt of fiscal deficit.
The letter reads in part, “The Ways and Means advances by the Central Bank of Nigeria to the federal government has been a funding option to the federal government to cater for short term or emergency finance to fund delayed government expected cash receipt of physical deficit.
“The Ways and Means balance as at 19th December 2022 is N22.7 trillion.
“I have 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; pricing interest rate 9%.
“Your concurrence and approval is sought to allow for the implementation of the same.”