House of Representatives Approves Buhari’s N1 Trillion Loan Request from CBN

The House of Representatives approved President Buhari’s request for an additional N1 trillion loan from the CBN to fund the 2022 supplementary budget, despite the bank exceeding its lending limit. The lawmakers suspended the request to securitize N22.7 trillion Ways and Means loans until they receive further details from the Executive. The House committees on Finance, Banking, Currency and Aids, Loans, and Debts Management presented a report recommending the approval of the N1 trillion loan restructuring for the 2022 Supplementary Appropriations Act.

The committees recommended further collaboration with the Executive for a thorough examination of the N22.7 trillion Ways and Means advances. Buhari requested in a 2022 letter that the N22.7 trillion loan be converted to a 40-year bond with a 3-year moratorium.

The N1 trillion loan will fund the approved N819.5 billion 2022 supplementary budget. Speaker Gbajabiamila stated that the other report will be considered after the recess.

In December, the Senate faced controversy during the consideration of the report, causing Senate President Lawan to defer it. The session became chaotic for a few minutes, as reported by PREMIUM TIMES, when the report was presented by the chairman of the Senate Committee on Finance, Adeola Olamilekan. Some lawmakers opposed the request due to legal concerns or lack of notification from the National Assembly about the central bank loan.

Source: Premium Times

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