Senate Approves Restructuring of N22.7 Trillion Ways, Means Advances to Avert Government Shutdown

The upper chamber of Nigeria’s National Assembly has given its approval to the restructuring of the controversial N22.719 trillion naira ways and means advances. This move, ostensibly, is aimed at ensuring the government remains operational and does not shut down.

After a thorough consideration of the report submitted by its ad hoc committee, the Senate granted the approval during Wednesday’s plenary session. The committee’s report highlighted that the federal government has repeatedly borrowed from the central bank of Nigeria, exceeding the five percent threshold of the previous year’s revenue, as stipulated by the CBN Act.
President Buhari’s request to restructure the sum of N22.719 trillion naira ways and means advances was initially met with suspicion and opposition by federal lawmakers in the Senate. Some senators expressed their dissent, citing constitutional and CBN Act violations.
Despite the objections, the Senate Leader, Ibrahim Gobir, led the debate for the approval of the Ways and Means on Wednesday. Gobir clarified that a portion of the funds had been granted as loans to states. The Red Chamber had established a Special Committee to scrutinize the fiscal document, which put together a comprehensive report after critically analyzing submissions made by the Federal Ministry of Finance, Budget, and National Planning, as well as the CBN.
This latest development is a crucial step in ensuring the government’s continued operations while also adhering to legal and regulatory frameworks. It highlights the Senate’s commitment to promoting transparency and accountability in the management of public finances.