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Tinubu Urges Senate for Approval to Transform N7.3 Trillion in Ways and Means Revenue
President Bola has formally requested the Nigerian Senate’s approval for the securitization of the outstanding balance of Way and Means revenue within the Consolidated Revenue Fund (CRF) of the country.
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In a letter addressed to Senate President Godswill Akpabio, The Nigerian president highlighted Section 38 of the Central Bank of Nigeria (CBN) Act of 2007, which allows the apex bank to provide temporary advances to the Federal Government in case of a temporary deficiency in budget revenue.
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The Nigerian president pointed out that the CRF account of the Federal Government reached N7.3 trillion as of December 2023, primarily due to domestic debt servicing, including both principal and interest. He emphasized the need to securitize the outstanding Ways and Means advance before the year-end to prevent reliance on such advances for domestic debt servicing.
The letter outlined the advantages of securitization, particularly a reduction in debt service costs. The interest rate for the securitized Way and Means would be lowered to nine percent from the previous three percent. The Nigerian president concluded the letter by requesting the Senate to deliberate and approve the securitization of the outstanding debit balance of N7.3 trillion as of December 2023.
This move reflects a strategic financial decision aimed at optimizing debt management and reducing reliance on short-term advances. The Senate’s decision on this matter will be pivotal for Nigeria’s fiscal stability and debt sustainability. Stay tuned for updates on this significant financial development.
