The Nigerian Senate said it stood down a restructure of the N22.8 trillion Ways & Means loans because it did not get sufficient information necessary enough to make a decision.
This was disclosed by Senate President Ahmad Lawan on Wednesday, after the passing of the 2023 national budget of about N21.8 trillion.
Lawan added that a committee has been set up to collect the necessary information on the issue.
Not enough information: Lawan stated for the Senate to make necessary decisions without any hindrance, it would need more information from the Government, he said:
- “We have stood down the consideration of the Ways and Means Restructure. We did so as a Senate, as a body, because we didn’t get the kind of information that we consider necessary and important for us to take a major decision like this, without any let or hindrance.
- “We have set up a special committee headed by the Senate Leader and in the membership, you have the committees of Finance, Appropriation, Foreign and Local Debts and Banking to collect all the necessary information
Increased cooperation: The Senate President also urged for cooperation with agencies and committees to enable proper guidance.
- “I want to use this opportunity to urge the executive arm of government, especially those agencies that will be invited to appear before this special committee, to cooperate by bringing the right kind of information that we need to be guided properly.”
Job well done: He praised his colleagues for the passing of the Finance Bill 2022, which he works as a guide to the implementation of the appropriations.
- “Let me also commend the senate and indeed the National Assembly for the innovation, together with the executive arm of government, of passing Finance Bill which always guides the implementation of the appropriations that we pass.
- “Previously, that was not the practice. I’m sure this is a worthwhile, very rewarding practice and it will continue.
What you should know: Nairametrics reported earlier that Nigeria’s central bank increased its ‘Ways and Means’ loans to the federal government in September by N749 billion. The total ways and means loans to the federal government increased to N22.8 trillion as of September 2022.
Ways and means were N648 billion when the current government came to power at the end of May 2015.
What is “Ways and Means”? The ways and means provision allows the government to borrow from the Apex Bank if it needs short-term or emergency finance to fund delayed government expected cash receipts of fiscal deficits.
- Provisions in the act cap monetary financing of fiscal deficits at 5% of the prior year’s revenues.
- However, since the government started experiencing a significant shortfall in revenue, it has relied heavily on the central bank to finance its expenditure programs via Ways and Means.
- 2022 is on track to record the highest loan extension to any government in Nigeria’s history via ways and means.