The House of Representatives partially approved the requests made by President Major General Muhammadu Buhari (retd.) regarding the Ways and Means Advances from the Central Bank of Nigeria on Tuesday. While the House agreed to restructure N1 trillion in Ways and Means Advances (WMAs), it rejected the request for N22,719,703,774,306.90 from the Central Bank. This decision was based on recommendations from the Joint Committees on Finance, Banking and Currency, and Aids, Loans, and Debts Management, which were laid, considered, and adopted during the House plenary session. The Deputy Chairman of the House Committee on Finance, Musa Abdullahi, presented the report.
The report stated, “Based on the observations and the exigencies of the Federal Government’s current fiscal situation, the committees recommend the following: (i) the approval of the requested restructuring of the N1 trillion additional Ways and Means Advances for the implementation of the 2022 Supplementary Appropriations Act as passed by the National Assembly; (ii) further engagement with the executive by the Joint Committee to allow for thorough and detailed work and submissions on the larger part of the advances, which amounts to N22,719,703,774,306.90 only.”
On December 21, 2022, both the President of the Senate, Ahmad Lawan, and the Speaker of the House, Femi Gbajabiamila, presented Buhari’s request to the members of their respective chambers. In the request titled ‘Restructuring of Ways and Means Advances,’ the President explained that the Ways and Means Advances by the Central Bank of Nigeria serve as a funding option for the Federal Government to address short-term or emergency financing needs due to delayed expected cash receipts and fiscal deficits. He noted that the Ways and Means balances as of December 19, 2022, amounted to N23,719,703,774,306.90.
Buhari also outlined the terms for the securitization of the Ways and Means balances, specifying an amount of N23.7 trillion, a tenure of 40 years, a three-year moratorium on principal repayment, and a pricing interest rate of 9 percent. He sought the concurrence and approval of the lawmakers to facilitate the implementation of these terms. However, consideration of the presidential request faced significant opposition in the Senate, leading to a delay. Following a meeting with Buhari, Senate President Ahmad Lawan indicated that the lawmakers would reconsider the request and aim to pass the WMAs.
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