N22trn loan to attract additional N1.8trn interest burden – Buhari warns NASS

President Muhammadu Buhari has warned the National Assembly to reconsider its stance on his administration’s N22.7 trillion ‘Ways and Means’ loan request, stating that failure to approve would cost the government an additional N1.8 trillion in 2023.

Buhari’s appeal comes barely one week after the Senate suspended his request to restructure the N22.7 trillion ‘Ways and Means advances’.

Buhari made this disclosure on Tuesday in Abuja as he signed the 2023 budget into law.

The total budget of N21.83 trillion is President Buhari’s eighth and final budget.

“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