The House of Representatives has approved the request by President Muhammadu Buhari to convert the N22.7 trillion “Ways and Means” loan to a long-term bond.
OsunDaily News reports that the N22.7 trillion is money borrowed by the Federal Government from the Central Bank of Nigeria (CBN) through the “Ways and Means advances”.
The loan provision allows the government to borrow from the apex bank if it needs short-term or emergency finance to fund delayed government expected cash receipts of fiscal deficits.
During plenary on Thursday, the lower chamber gave the approval following the consideration of the report presented by the House Committees on Finance, Banking and Currency and Aids, Loans and Debt Management.
The presiding officer and the Committee of Supply, chaired by Deputy Speaker Idris Wase, considered the recommendation in the report and approved it.
Buhari, who is due to leave office on 29 May, had in a letter in December 2022 requested that the N22.7 trillion Ways and Means loan should be converted to a 40-year bond with a moratorium of three years.
He asked both chambers of the National Assembly to approve the proposal, but the lawmakers could not consider the request before proceeding with the election, Easter, and Ramadan breaks.
The president also requested the approval to borrow an additional N1 trillion to fund the N819.5 billion 2022 supplementary budget which the lawmakers approved last December.
Also at the plenary, the ad-hoc committees saddled with the investigation of the volume of fuel consumed daily, and the state of refineries, laid its findings and recommendations for consideration.
In his remarks, the Deputy Speaker said the report would be considered next week Tuesday and directed the clerk to make copies of the reports available to members which will help in decision-making for the outgoing and incoming government.
