Senate finally approves N22.7tn already spent by FG

Senate approves N22.7tn already spent by FG

The Senate has finally approved the sum of N22.7tn spent by the executive arm of government without the initial approval of the national assembly.

The N22.7tn is money borrowed by Federal Government from the Central Bank of Nigeria (CBN) through the “Ways and Means” advances.

The Ways and Means provision allows the government to borrow from the apex bank if it needs any short-term or emergency finance to fund delayed government expected cash receipts of fiscal deficits.

Since the government started experiencing a significant shortfall in revenue, it has relied heavily on the central bank to finance its expenditure programmes via Ways and Means whose balance as of December 19, 2022 stood at N22.7tn.

The FG had said it would repay the loan with securities such as treasury bills and bonds issuance.

READ ALSO:

• Demolition in Lagos airport: Senate resolution is merely advisory – Minister

• Victim rescued as angry youths set suspected kidnapper ablaze in Anambra

• Court grant Eze Ndigbo who threatened to invite IPOB to Lagos bail

President Buhari last year asked the Senate to approve his proposal to securitise the loan but the Red Chamber rejected the request, citing lack of details.

The House of Representatives had earlier given its approval.

Senate Leader Ibrahim Gobir, who led the Senate in the debate for the approval of the Ways and Means on yesterday, explained that part of the money was given as loans to states.

Gobir added that the special committee set up by the Red Chamber to scrutinise the fiscal document put up the report after ‘critical analysis and review of submissions made by the Central Bank of Nigeria and the Federal Ministry of Finance, Budget and National Planning.

Senate President Ahmad Lawan, after the approval of the fiscal document, noted that the Ways and Means Advances was a global practice.

He, however, faulted the process adopted by the executive arm of government which failed to carry the National Assembly along while accumulating the huge amount of loans.

Lawan added that the Senate had to pass the Ways and Means advances so that the federal parliament would be able to consider and pass the 2022 Supplementary Budget still pending before the national assembly.

Senate approves N22.7tn already spent by FG