• The Nigerian Senate said it is ready to approve the debt restructuring request made by President Buhari.
  • Buhari pleaded with the National Assembly in December last year to restructure CBN’s advances or face an additional 1.8 trillion naira in debt service in 2023.
  • Nigeria’s debt has skyrocketed 30 times under the Buhari administration on fears it could reach 77 trillion naira by 2023.

As the Nigerian government struggles to deal with its massive debt burden, Senate President Ahmed Lawan has stated that the upper legislature is ready to approve the N22.7 trillion request made by President Muhammadu Buhari in December 2022.

Lawan accused the Minister of Finance, National Budget and Planning and Governor of the Central Bank of Nigeria, Godwin Emefiele, of stalling the process by delaying the delivery of the necessary documents detailing the Advance Ways and Means.

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National Assembly, James Faleke, Buhari, Lawan
President Buhari, James Faleke, Ahmed Lawan and Femi Gbajabiamila Credit: State House, Abuja
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Some lawmakers oppose Buhari’s request

Punch reports that lawmakers, led by Rivers West Senator Betty Apiafi, opposed the securitization of CBN advances raised by the Nigerian government over the past ten years, as well as the recently requested N1 trillion national loan.

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According to lawmakers, both Buhari and Emefiele have violated the constitution.

Buhari urged lawmakers to agree to the request, saying failure to approve the document would cost the Nigerian government about 1.8 trillion naira in additional debt service in 2023.

Lawan, on Tuesday, January 17, 2023, requested the executive to provide the Senate with the details of the N22.7 trillion methods and means restructuring proposal.

Senate asks Emefiele and Zainab Ahmed to provide necessary documents

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The Senate deliberately ordered the Finance Minister and the head of CBN to provide the necessary information within three days.

Lawan stated that the Senate was ready to approve the application after careful examination which might be possible if the necessary details and documents were provided by the appropriate government officials and arms.

He said:

“We must have the necessary information for the approval of the application of N22.7tn and time is not on our side in the Senate now in view of the next general elections.

Nigerian debt spirals out of control

Bloomberg reports that Nigeria’s debt has increased 30-fold under the presidency of Muhammadu Buhari, as a $50 billion overdraft from CBN is to be converted into Nigerian debt.

Advances of N22.7 trillion CBN will be converted into bonds payable over decades, increasing Nigeria’s official debt by more than half. The move will push Nigeria’s debt-to-GDP ratio toward the 40 percent limit set by the Buhari government.

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Nigerian debt stock to reach 77 trillion naira by 2023 when FG embarks on new loans

Remember that legit.ng reported that Nigeria’s debt stock will reach 77 trillion naira with the addition of 22.7 trillion naira loans from the Central Bank of Nigeria (CBN) to the federal government, as well as new loans billed by 2023.

The country’s debt profile reached N44.06 trillion in the third quarter of 2022 from N39.56 trillion at the end of 2021, according to data from the Debt Management Office (DMO).

According to Patience Oniha, Director General of the Debt Management Office, the country’s debt has already surpassed the N44 trillion mark in September 2022 and immediately after the National Assembly approves the securitization of CBN’s ways and means, the amount would be added to the national debt. debt.

Source: Legit.ng