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Nigerian Lawmakers approve additional N1 trillion in new Ways and Means loan for 2023 budget

Nigerian lawmakers have approved an additional N1 trillion loan to the federal government via the Ways and Means provisions enshrined in the CBN Act.

President Buhari had requested an additional N1 trillion in CBN borrowings which takes the total Ways and Means provision to N23.7 trillion.

Included in the request by the president is a proposal to convert the Ways and Means into a 40-year bond at 9% interest.

However, lawmakers balked at the request saying they would discuss with officials the plan to turn the central bank borrowings to the government into long-term debt.

Highlights of the 2023 Budget

Nigeria’s 2023 budget is stated at N20.5 trillion including N10.78 trillion in budget deficits in 2022.

  • The total revenue available to fund the 2023 FGN Budget is estimated at N9.73 trillion.
  • In aggregate, 20% of projected revenues is expected from oil-related sources, while 80% is to be earned from non-oil sources
  • Government plans to fund the deficit by borrowing N7.04 trillion from Domestic sources and N1.76 trillion from Foreign sources
  • Another N1.77 billion in Multi-lateral /bi-lateral loans and Privatisation Proceeds of N206.18 bn
  • The budget assumed petrol subsidy will remain in place till the first half of 2022. About N3.3 trillion was budgeted.

Lawmakers at the upper house of parliament, who are currently on recess to campaign for elections due in March, will need to approve the borrowing plan for it to become law.

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