VANGUARD
By Johnbosco Agbakwuru
President Muhammadu Buhari said yesterday it would cost the federal government N1.8 trillion in interest, if the National Assembly failed to approve N23.7 trillion in extra-budgetary spending.
The President also said his government had made adequate provisions in the 2023 budget for the successful conduct of the forthcoming general elections and the transition programme.
Recall that Buhari had asked the National Assembly to approve the sum he said were funds provided by the Central Bank of Nigeria, CBN, through loans for emergencies in the space of 10 years.
The Senate had last week, suspended the request of the President after a rowdy session, as
Senators Betty Apiafi and Thompson Sekibo had argued that the request was not constitutional.
They also demanded that before the Senate could approve the request, it must have the details of what the funds were spent on.
But speaking at the signing ceremony of the 2023 budget of N21.83 trillion at the Presidential Villa, Abuja, Buhari said he had no intention to contest the decision of the lawmakers.
He said: “I also urge the National Assembly to reconsider its position on my proposal to securitise the federal government’s outstanding Ways and Means balance at the Central Bank of Nigeria, CBN.
“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.
“I have no intention to fetter the right of the national assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.
“Failure to grant the securitisation approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus three percent and the negotiated interest rate of nine percent and a 40-year repayment period on the securitised debt of the Ways and Means.”
