Buhari Implores National Assembly to Restructure N22.7 Trillion Debt, Lawan Agrees
- The Nigeria's Senate has said it is ready to approve the debt restructuring request made by President Muhammadu Buhari
- Buhari pled the National Assembly, in December 2022, to securitise the CBN advances collected in the last ten years or face an additional N1.8t trillion in debt servicing in 2023
- Nigeria’s debt has skyrocketed 30-fold under Buhari’s administration with fears it could hit N77 trillion in 2023
As the Nigerian government struggles to service its bloating debt, the Senate President, Ahmed Lawan has stated that the upper legislative chamber is willing to approve the N22.7 trillion request made by President Muhammadu Buhari in December 2022.
Lawan accused the minister of Finance, Budget and National Planning, Zainab Ahmed and the governor of the Central Bank of Nigeria, Godwin Emefiele, of stalling the process by failing to provide the requisite documents with details of the Ways and Means Advances.
Source: Facebook
Some lawmakers oppose Buhari's request
Punch reports that the lawmakers, led by Senator Betty Apiafi of Rivers West, opposed the securitisation of the CBN advances collected by the Nigerian government in the last ten years, as well as the N1 trillion domestic loan recently requested.
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According to the lawmakers, Buhari and Emefiele have breached the constitution.
Buhari urged the lawmakers to agree to the request, saying that failure to pass the document would cost the government about N1.8 trillion in additional debt servicing in 2023.
Lawan, on Tuesday, January 17, 2023, asked the executive to furnish the Senate with details of the N22.7 trillion Ways and Means restructuring proposal.
Senate asks Emefiele and Zainab Ahmed to provide necessary documents
The Senate pointedly ordered the finance minister and the CBN boss to provide the needed information within three days.
Lawan stated that the senate was poised to approve the request after a careful examination, which could be possible if necessary details and documents were provided by appropriate officials and arms of government.
He said:
“We must have the necessary information for passage of the N22.7tn request and time is not on our side in the Senate now in view of coming general elections.
Nigeria's debt spiraling out of hand
Bloomberg reports that Nigeria’s debt has ballooned 30-fold under President Muhammadu Buhari as a $50 billion overdraft from CBN is set to become Nigeria’s debt.
The N22.7 trillion advances from CBN will be converted into bonds that will be payable over decades, boosting Nigeria’s official debt by more than half. The move will skyrocket Nigeria’s debt-to-GDP ratio toward the 40 per cent limit set by Buhari’s government.
Nigeria’s debt Stock to hit N77 trillion in 2023 as FG embarks on New borrowings
Recall that Legit.ng reported that Nigeria’s debt stock is set to hit about N77 trillion with the addition of the N22.7 trillion loans from the Central Bank of Nigeria (CBN) to the federal government as well as new borrowings billed for 2023.
The country’s debt profile hit N44.06 trillion in the third quarter of 2022 from N39.56 trillion at the end of 2021, data from Debt Management Office (DMO) said.
According to Patience Oniha, Director-General of the Debt Management Office, the country’s debt already crossed the N44 trillion mark in September 2022 and immediately after the National Assembly approves the securitisation of the CBN’s Ways and Means, the amount would be added to the national debt.
Source: Legit.ng
