FG to increase borrowing from CBN as Senate votes to amend 2022 supplementary bu…

• Nigeria‘s highest law-making legislature, Senate, has voted to increase CBN’s borrowing to the Nigerian government
• The Senate amended the 2022 Appropriation Supplementary Budget to accommodate the new borrowing limit
• The upper legislative body also stated that the amendment also allows MDaAs to utilize all funds released to them

In an emergency session on Saturday, May 27, 2023, the Nigerian Senate amended the Central Bank of Nigeria (CBN) Act to boost the total CBN advances known as Ways and Means to the Nigerian government from 5% to a maximum of 15%.

Nairametrics said there were reports earlier that the emergency session was explicitly held to Amend the CBN act for more borrowing.

The bill allows the Nigerian government to meet financial obligations

The Senate Session reportedly began at about 11 am on Saturday, May 27, 2023, which is a deviation from the usual practice, which has its sittings day on Tuesdays and Wednesdays.

Senate Leader Abdullahi Gobir read the debate on the bill and said the proposed amendment allows the Federal Government to meet its current and future obligations in approving the Ways and Means by the legislature and advances to the federal government by the CBN.

During the committee’s sitting, the Senate amended the 2022 Supplementary Appropriation Act to extend the implementation year from June 30 to December 31, 2023.

The move allows the full implementation of the budget, particularly regarding the 2022 supplementary budget approved in December 2022. It will enable Ministries, Departments, and government agencies to use a large part of their allocated funds.

Gobir stated that many funds remain with MDAs and will need a further extension to be fully utilized.

Government agencies compelled to use full allocated funds

The Senate Leader said considering the essential importance of some critical projects almost completed, requesting a further extension of the expiration clause in the 2022 Supplementary Appropriation Bill, it is reasonable to avoid the problem of abandoned projects as some needed to be captured in the 2023 budget.

Gobir stated that the Senate is amending the 2022 appropriation act to permit full implementation of the capital releases to help reflate the economy.

The Senate is therefore amending the 2022 appropriation act to allow full utilization of the capital releases to help reflate the economy.

CBN Says it will beg the Dangote refinery to sell dollars, other currencies to banks at a reasonable rate

Legit.ng reported that following the Dangote Refinery commissioning and its plan to deliver its first products in July, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said that the bank will ask the refinery to sell foreign exchange to banks at a reasonable rate.

Emefiele stated his team would engage Aliko Dangote, Chairman of Dangote Group, to ensure that Nigerians benefit from the refinery, saying that the country helped him set it up.

The apex bank boss expressed hope that the 650,000bpd capacity refinery would reduce forex scarcity in Nigeria, stating that about 20% of the total cost of importing petroleum products into the country would be saved, leading to price reduction.

Source: Legit.ng