N22trn Loan To Attract Additional N1.8trn Interest Burden – Buhari Warns NASS

President Muhammadu Buhari has urged the National Assembly to change its mind about approving the N22.7 trillion “Ways and Means” loan request made by his administration, adding that doing so would result in additional costs to the government of N1.8 trillion in 2023.

Only one week has passed since the Senate put Buhari’s request to restructure the N22.7 trillion “Ways and Means advances” on hold.

As he signed the 2023 budget into law on Tuesday in Abuja, Buhari disclosed this.

The eighth and last budget of President Buhari has a sum of N21.83 trillion.

“Failure to grant the securitization approval will cost the government about N1.8tn in additional interest in 2023. Given the differential between the applicable interest rates, which is currently MPR plus three per cent and the negotiated interest rate of nine per cent and a 40year repayment period on the securitized debt of the Ways and Means,” the president said.

Meanwhile, in his reaction, the Senate President, Ahmed Lawan, pledged commitment to consider Buhari’s request.