The Senate has approved and confirmed the securitization of the outstanding 7.3 trillion naira in Ways and Means, as per President Bola Tinubu’s request.
Tinubu wrote to the Red Chamber, urging them for swift approval in securitizing the outstanding debit balance of N7.3 trillion in the consolidated revenue fund.
Senate President, Godswill Akpabio, during Saturday’s plenary, read a letter from the president seeking approval on the Senate floor.
The president mentioned in his letter that, while the federal government is exploring different approaches to prevent the reliance on ways and means advances for domestic debt servicing, it is crucial to prioritize the securitization of the existing ways and means advances to the federal government by the end of 2023.
According to the letter sent to the Senate, the President emphasized that securitizing Ways and Means could lower the debt service cost.
Furthermore, the letter stated that the interest rate for the securitized Ways and Means advances has been reduced to 9% per annum, a decrease of 3% compared to the Monetary Policy Rate (MPR)
The president added that the savings arising from the lower interest rate will reduce the deficit in the budget.
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