As both Chambers of the National Assembly resume plenary today from Christmas and New Year break, approval of Presidential request for restructuring of N23.7trilliion Ways and Means, tops agenda. TAIYE ODEWALE reports
Meaning of Ways and Means in financial parlance
The term “ways and means” originated with the Parliament of England and refers to the provision of revenue to meet national expenditure requirements and to implement the objectives of economic policy.
They also connote methods and resources available to accomplish an end, especially, to meet expenses and also legislation for raising revenue needed by a government.
Within the Nigerian context governmentally at the federal level, Ways and Means, are advances from the Central Bank of Nigeria (CBN) to the federal government, for emergency funding of delayed receipt of fiscal deficits or funding options provided for the government by CBN in anticipation of loans already sought, approved but yet to be received.
Request for restructuring of the N23.7trillion Ways and Means
Being funding options for emergency expenses which are later taken care of, by loans specifically meant for the spendings, the options had as at December 2022, accumulated to N22.7trillion within a spate of 10 years, requiring restructuring in terms of re – payments of loans collected for such purposes.
Presidential request
Little wonder that President Muhammadu Buhari in a letter dated 20th December, 2022, separately forwarded to both the Senate and the House of Representatives, requested for restructuring of accumulated N22.7trillion Ways and Means in addition to a fresh N1trillion one, substantially meant for funding of N819.5billion 2022 supplementary budget, totalling N23.7trillion Ways and Means.
The letter entitled: “Restructuring of ways and means advances” read in part, “The ways and means advances by the Central Bank of Nigeria, to the federal government has been a funding option to the federal government to cater for short term or emergency finance to fund delayed government expected cash receipt of physical deficit.
“The ways and means, balances as at 19th December 2022 is N22.7 trillion.
“I have approved the securitization of the ways and means balances along the following terms ÷ Amount. N23 .7 trillion,
Tenure 40years, Moratorium on principal repayment , three years , Pricing interest rate 9%.
“Your concurrence and approval is sought to allow for the implementation of same”
Failed expeditious consideration in Senate
Upon receipt of the request as read on the floors of the Senate and House of Representatives on Wednesday, December 21, 2022; the President of the Senate, Ahmad Lawan, forwarded it to the Senate Committee on Finance for report consideration and passage in plenary the following day (Thursday, December 22, 2022) but failed to do so due to none availability of report to that effect from Committee on Finance.
December 28, 2022 uproar over the request in Senate
Presentation of report on the request by the Chairman Senate Committee on Finance Senator Solomon Adeola (APC Lagos West) on Wednesday, December 28, 2022 for final consideration and approval by Senate, ran into trouble waters with objection raised to that effect by Senator Betty Apiafi (PDP Rivers West).
Apiafi who rose against it through constitutional point of order said: “Ways and Means expenditure are not known to the Nigeria Constitution and should not be considered by the Senate ”
Though ruled out of order by the President of the Senate Ahmad Lawan but even when the report was presented, objections against it from other Senators, forced the Senate to stand it down.
Specifically, Senator George Thompson Sekibo, in a potent move to kill the report, rose through constitutional orders by citing sections 80, 83, Section1,13(1) of the 1999 Constitution and section 38 of the CBN Act to kick against the request.
He said: “Section 80 of the 1999 constitution as amended states that all revenues or other monies raised or received by the federation, not being revenue and other monies payable under this constitution or any act of the National Assembly into any other public fund of the federation established for a particular purpose shall be paid into and for and form one consolidated revenue fund of the federation.
“No money shall be withdrawn from the consolidated revenue fund of the Federation except to meet expenditure that is charged upon the fund or where the issue of those monies have been authorized by an appropriation act, supplementary act or an act passed in pursuance of section 81 of the constitution.
“No money shall be withdrawn from any account other than the consolidated revenue fund of the Federation unless the issue of those monies have been authorized by the Act of the National Assembly.
“Section 80 (4) states that no money shall be withdrawn from the consolidated revenue fund or any other fund of the federation except by the approval of the National Assembly, except in the manner prescribed by the National Assembly.
“Section 38 of the CBN Act states any money collected by federal government as loan or emergency fund in form of Ways and Means Advances, must be refunded before collection of another one.
“Mr President, the relevant laws quoted, clearly show that the N22.7triillion Ways and Means Advances already spent by federal government without informing the National Assembly was wrong and will be unfair as representatives of Nigerians to approve this request”.
Spirited attempt made by the Senate President to make Senators back down, proved abortive as many of them, left their seats and shouting , no !, no !, which hurriedly made then to go into close session for about one and half hours after which the report was stood down.
However, as announced by the President of the Senate Ahmad Lawan after the storming closed door session, N819.5billion component of the request, meant for financing of 2022 supplementary budget was approved while a special committee was set up to summon the Minister of Finance, Zainab Ahmed, CBN governor, Godwin Emefiele and heads of other relevant agencies, for details on expenditure made from the N22.7triillion.
The Committee headed by the Senate Leader, Ibrahim Gobir (APC Sokoto East), is expected to submit its report today, (Tuesday, January 17, 2023) in plenary for re – consideration and possible passage.
Presidential plea for the passage
Aside passionate plea made in his written communication to both Chambers of the National Assembly on 21st December, 2022, for consideration and passage of the request, President Muhammadu Buhari penultimate Tuesday while assenting to the N21.83trillion 2023 budget, repeated his plea for quick approval of the request to save the country from additional N1.8trillion interest.
He said: “Balance of N22.7trillion Ways and Means, has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.
”I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.
”Failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitised debt of the Ways and Means”.
Lawan’s assurance
Expectedly, the President of the Senate in response to President Muhammadu Buhari’s request , told journalists covering the State House that on resumption of both the Senate and the House of Representatives, the balance of the N23.7trillion Ways and Means Restructuring, shall be approved.
“What made the Senate and by extension, the National Assembly to stand down the request on December 28, 2022 during passage of the 2023 budget, was non – availability of details of the request which must have been made available to committee set up for that purpose by the Senate.
“The request shall surely be given expeditious passage by both Chambers of the National Assembly as soon as report to that effect presented by committee saddled with the assignment on required details”, he said.
With pleas made by President Buhari and assurances given by leadership of the National Assembly, the ball is certainly in the court of the federal lawmakers to do the needful on the remaining N22.7trillion Ways and Means Restructuring.