Tinubu ignores special investigator, asks Senate to approve conversion of N7.3 trillion ways and means revenue
Ignoring the advice of his special investigator, Jim Obazee, who stated that the balance was dubious and illegally incurred and should be reevaluated prior to Senate authorization, President Bola Tinubu has requested Senate approval to convert the remaining ways and means of revenue in Nigeria’s Consolidated Revenue Fund (CRF) into federal assets.
In a letter to Senate President Godswill Akpabio, which was read aloud on Saturday during plenary, Mr. Tinubu made this claim.
“I would want to draw the Senate’s attention to the provisions of CBN Act 2007 section 38, which states that the federal government may receive temporary advances from the apex bank.
“With regard to the shortfall in budgetary revenue, these overdrafts do not exceed five percent of the government’s revenue from the prior year.”
The Senate is invited 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, mostly because of principle and interest payments on domestic debt. This information is based on data made public by the CBN.
“As the federal government contemplates different actions to prevent the utilisation of ways and means advances for the payment of domestic debt,” he stated.
According to the president, securitization was essential because it would lower the cost of debt servicing.
The following advantages will be realised, among others, as a result of the ways and means being securitized:
“Debt service costs are reduced as the interest rate for the securitized methods and means is reduced to 9% from the previously accepted 3%.
“Since securitized ways and means advances are included in the public debt statistics, the savings from the significantly lower interest rate would help to reduce the budget deficit and promote debt transparency.”
“With the aforementioned in mind, the Senate is cordially requested to kindly examine and authorise the securitization of the outstanding N7.3 trillion debit balance in the same order as at December 2023.”
