Reps Approves Buhari’s Request To Borrow N1 Trillion From CBN

The House of Representatives has approved the request by President Muhammadu Buhari to secure an additional N1 trillion loan from the Central Bank of Nigeria (CBN) to fund the 2022 supplementary budget.

The CBN has already violated its enabling law by loaning the federal government more than the approved limit, PREMIUM TIMES reported. This did not, however, deter the lawmakers from approving the fresh loan from the central bank.

Also, the House suspended the request to securitize the N22.7 trillion Ways and Means loans pending more details from the Executive.

On Tuesday, the House Committees on Finance, Banking and Currency, and Aids, Loans and Debts Management jointly presented a report recommending the approval of the restructuring of N1 trillion additional Ways and Means advances for implementation of the 2022 Supplementary Appropriations Act as passed by the National Assembly.

Also, the committees recommended further engagement with the Executive to allow for thorough and detailed work and submissions on the larger part of the Advances which amounts to N22.7 trillion.

Mr Buhari had in a letter in 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.

The N1 trillion is expected to be used to fund the N819.5 billion 2022 supplementary budget which the lawmakers approved last December.

Speaking on the report, Speaker Femi Gbajabiamila informed his colleagues that the other report will be considered subsequently after their recess.

In December, there was a mild drama in the Senate over the consideration of the report, prompting the Senate President, Ahmad Lawan, to step down the report

The chamber was thrown into a chaotic session for minutes during the consideration of the report which was presented by the chairman of the Senate Committee on Finance, Adeola Olamilekan.

Many lawmakers who opposed the president’s request either said it was against the laws or wondered why the National Assembly was not notified when the amount was taken from the central bank.