President Bola Ahmed Tinubu has mandated the Senate to securitize the outstanding N7.3 trillion Ways and Means.
This was even as the Federal Government is considering various measures to forestall the use of Ways and Means advances for domestic debt servicing.
The Senate had in May 2023 approved the request of the former President Muhammadu Buhari to restructure the N22.7 trillion 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.
Tinubu in a letter read by the President of the Senate, Godswill Akpabio, asked the Senate to securitize the outstanding Ways and Means advances to the Federal Government of Nigeria before the end of the year 2023.
He said that the securitization of Ways and Means would lead to the realisation of reduction of debt service cost as the interest rate for the Ways and Means Advances lowered at 9 percent per annum compared to MPR, which is +3%.
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He added: “The savings arising from the much lowered interest rate will help reduce the deficit in the budget.
“Improvement in debt transparency and securitize Ways and Means Advances are included to the public debt Statistics.”
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