Tinubu dismisses special investigator, requests Senate approve conversion of N7.3 trillion ways, means revenue

While his special investigator, Jim Obazee, had advised that the balance be reevaluated prior to Senate authorization because it was dubious and illegally incurred, President Bola Tinubu has proceeded with his request for Senate approval to convert the remaining ways and means of revenue in Nigeria’s Consolidated Revenue Fund (CRF) into federal assets.

Sen. Godswill Akpabio was the recipient of a letter from Mr. Tinubu that was read aloud during Saturday’s plenary. ”

Section 38 of the CBN Act of 2007 states that the apex bank may provide the federal government with short-term advances. I would like to draw the Senate’s attention to these provisions.

The overdrafts do not exceed five percent of the government’s revenue from the previous year, notwithstanding the brief shortfall in budgetary revenue.

The Senate is urged to take note of the fact that, as of December 2023, the Federal Government of Nigeria’s (FGN) Consolidated Revenue Fund (CRF) account stood at N7.3 trillion, principally from interest and debt servicing from domestic sources, according to figures made public by the CBN.

The speaker stated, “The federal government is considering various measures to forestall the use of ways and means advances for domestic debt servicing.”

As securitization would lower debt servicing costs, the president declared that it was essential.

Among the benefits that will be realised as a result of the ways and means being securitized are the following:

debt service costs are reduced because the interest rate on the securitized methods and means is now 9% instead of the previous 3%.

“The public debt statistics now include advances from securitized methods and means, which will contribute to reducing the budget deficit and improving debt transparency.”

Given the aforementioned, the Senate is cordially requested to examine and sanction the securitization of the remaining N7.3 trillion negative amount in the same sequence as of December 2023.