Opposition Lawmakers Walkout as NASS Raises ‘Ways and Means’ Limits to 10%

By Adedapo Adesanya

On Wednesday, the Senate and the House of Representatives passed a bill to increase the percentage of Ways and Means, also known as the loan the Central Bank of Nigeria (CBN) can give to the federal government by 10 per cent.

This happened despite a walkout staged by opposition lawmakers at the lower chamber of the parliament.

The upper chamber of the Nigerian legislature raised the credit facility obtainable by the federal government from the apex bank from 5 per cent to 10 per cent and likewise, the House of Representatives did the same.

Known as the Ways and Means, the apex bank offers short-term financing to the FG to cover its budget shortfalls.

To do this, the Senate amended the CBN Act to increase the total CBN advances (loans) to the federal government.

“Notwithstanding the provisions of section 34 (d) of this Act, the bank may grant temporary advances to the Federal Government in respect of temporary deficiencies in budget revenue at such a rate of interest as the bank may determine. The total amount of such advances outstanding shall not at any time exceed ten per cent of the previous year’s actual revenue of the Federal Government,” the proposed Section 38 reads.”

The amendment followed the consideration of a report submitted by the House Leader, Mr Julius Ihonvbere, to the Committee of the Whole, chaired by Deputy Speaker Ben Kalu.

The Leader of the Senate, Mr Opeyemi Bamidele said the executive bill read for the first time on Wednesday is to enable the Federal Government to meet its immediate and future obligations owing to the government’s increasing needs for funds to finance the budget deficits and other expenses.

He explained that the loans would enable the provision of immediate funds to address budget shortfalls and finance essential government expenditures as well as help maintain financial market stability by preventing government default on its obligation.

After consideration in the Committee of the Whole, the executive bill scaled the third reading and was passed.

President Bola Tinubu is expected to sign the amended bill into law.

Recall that there have been allegations in the last couple of years that ‘ways and means’ were grossly abused by the erstwhile President Muhammadu Buhari’s administration.

President Buhari had attempted to securitize over N23 trillion borrowed from the CBN before he left office and both chambers of the National Assembly are currently investigating its utilization.