President Bola Ahmed Tinubu has formally requested the Nigerian Senate’s approval for the securitization of the remaining debit balance of N7.3 trillion in the consolidated revenue fund, commonly known as Ways and Means advance. This appeal was presented in a letter read by Senate President Godswill Akpabio during Saturday’s plenary session.
In the correspondence, the President acknowledged the federal government’s exploration of various measures to prevent the deployment of ways and means advances for domestic debt servicing. Nevertheless, he underscored the pressing need to securitize the outstanding ways and means advance to the federal government before the conclusion of 2023.
Tinubu justified his plea by referencing Section 38 of the Central Bank of Nigeria Act 2017, which authorizes temporary advances to the federal government to address budget deficits. He pointed out that as of December 11, 2023, the consolidated revenue fund amounted to N7.3 trillion, primarily attributable to domestic debt servicing, both in principal and interest.
Highlighting the potential advantages of securitizing ways and means, Tinubu stressed that it would yield benefits such as a reduction in debt service costs. Furthermore, he asserted that the resulting savings from lower interest rates would contribute to diminishing the budget deficit.
The letter concluded with an invitation for the Senate’s consideration and approval of the securitization of the outstanding debit balance of N7.3 trillion in the CNRF as of December 11, 2023. It is worth recalling that in May 2023, the Senate had previously sanctioned the N22.7 trillion loans extended by the Central Bank of Nigeria under its Ways and Means provision.
