Tinubu Asks Senate To Securitize Outstanding N7.3tn Ways And Means

The New Diplomat
Writer

Ad

Thailand’s Prime Minister Removed From Office over Leaked Phone Call Scandal with Cambodian Strongman

A Thai court removed the country’s suspended prime minister Paetongtarn Shinawatra from office on Friday for a serious breach of ethics over a controversial phone call she had with Cambodia’s former leader, plunging the kingdom into fresh political turmoil. Paetongtarn became the country’s youngest prime minister in August 2024 and has served only a year…

Oil Prices Dip but Stay on Track to Extend Last Week’s Gains

Crude oil prices were set for another weekly rise after additional 25% tariffs on Indian exports to the United States kicked in on Wednesday, raising doubts about the supply of Russian crude. At the time of writing, Brent crude was trading at $68.17 per barrel, with West Texas Intermediate at $64.20 per barrel, both slightly down from Thursday’s close…

Tesla sales tumble 40% in Europe as BYD surges past rival

By Obinna Uballa Tesla’s grip on the European electric vehicle market continued to loosen in July, with sales plunging 40% year-on-year even as Chinese challenger BYD posted explosive growth, according to data from the European Automobile Manufacturers Association (ACEA) on Thursday. New car registrations of Tesla vehicles totaled 8,837 in July, down 40% year-on-year, according…

Ad

By Agency Report

President Bola Ahmed Tinubu has asked the Nigerian Senate to securitize outstanding N7.3 trillion ways and means.

This is as the federal government Is considering various measures to forestall the use of ways and means advances for Domestic Debt Servicing.

President Tinubu’s request is contained in a letter read during Saturday plenary by President of the Senate Godswill Akpabio on the need to securitize the outstanding ways and means advances to the federal government of Nigeria before the end of the year 2023.

Tinubu says the securitization of ways and means will lead to Reduction of debt service cost as the interest rate for the securitized ways and means Advances lowered at 9% per annum compared to MPR which is +3%.

He added that the savings arising from the much lowered interest rate, will help reduce the deficit in the budget.

He re-echoed that it will also improve debt Transparency and securitize ways and means advances are included to the public debt Statistics.

Tinubu says available information by the CBN, the consolidated Revenue funds account of the Federal Government of Nigeria, is put at N7. 3 Trillion as at December 11th 2023 largely due to debt servicing and interest.

He asks the senate to consider and approve the securitization of the Outstanding daily balance of N7. 3 Trillion in the Consolidated Revenue Fund as at December 11th 2023.

The Senate had in May 2023, approved the request of the former President Muhammadu Buhari to restructure the N22.7tn loan from the Central Bank of Nigeria extended to the Federal Government under its Ways and Means provision.

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.

The request is referred to the committee of the whole house for further deliberation. (AIT)

Ad

X whatsapp