The Senate has given its approval for the restructuring of the controversial N22.719 trillion naira ways and means advances. This move is intended to prevent the government from shutting down. The upper chamber gave its approval during Wednesday’s plenary session after considering a report from its ad hoc committee. The report noted that the federal government repeatedly borrowed from the central bank of Nigeria, exceeding the five percent threshold of the previous year’s revenue as stipulated by the CBN Act.
President Buhari had requested the National Assembly to restructure the sum of 22.719 trillion naira in ways and means advances, but federal lawmakers in the Senate met his request with suspicion and opposition. In his letter to the Senate, which was read on the floor on December 21, 2022, he explained that the ways and means of advances given to the Federal Government by the Central Bank of Nigeria (CBN) are for emergency funding of delayed receipt of fiscal deficit.
Some senators were opposed to approving the overdraft, explaining that it contravened the constitution and the CBN Act. However, leading the Senate in the debate for the approval of the Ways and Means on Wednesday, the Senate Leader, Ibrahim Gobir, explained that part of the money was given as loans to states.
He also explained that the Special Committee was set up by the Red Chamber to scrutinise the fiscal document. The committee put up the report after critical analysis and review of submissions made by the Federal Ministry of Finance, Budget, and National Planning, as well as the CBN.
