Buhari Warns Of Extra Burden Of N1.8 Trillion On Government

President Muhammadu Buhari has warned that the federal government will pay an extra N1.8 trillion in interest if the national assembly fails to approve the extra-budgetary spending of N23.7 trillion.

"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 three percent and the negotiated interest rate of nine percent and a 40-year repayment period on the securitized debt of the Ways and Means," he said, as per The Punch.

Buhari made the comments during the signing ceremony of the 2023 budget of N21.83 trillion and the 2022 Supplementary Appropriation Bill into law, Tuesday.

Even though the president said the government needs the money to fund its infrastructure projects, he doesn't plan to argue with the lawmakers about the decision.

"I also urge the national assembly to reconsider its position on my proposal to securitize the federal government's outstanding Ways and Means balance at the Central Bank of Nigeria (CBN)," said Buhari.

The national assembly has been debating the proposed extra-budgetary spending for a while now. Some lawmakers said that they will not approve the spending unless the government provides more details about how the money will be used.

The president asked the national assembly to approve the sum he said were funds provided by the Central Bank of Nigeria (CBN) through loans for "emergencies" in the space of 10 years.

The Senate, however, rejected Buhari's request following a heated debate.

The President further stated the National Assembly has added new projects totaling N770.72 billion to the 2023 budget proposal he submitted, saying they also increased the provisions made by Ministries, Departments, and Agencies (MDAs) by N58.55 billion, according to Premium Times.

He further added that the total expenditure for 2023 is now N21.83 trillion, which is an increase of N1.32 trillion over his initial executive proposal of N20.51 trillion, Premium Times Reported.

"We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal. The amended fiscal framework for 2023 as approved by the National Assembly, showed additional revenue of N765.79 billion, and an unfunded deficit of N553.46 billion," said Buhari, as per Daily Trust.

The 2022 Supplementary Appropriation Act will help the government respond to the damage caused by recent floods, he explained and asked the Minister of Finance, Budget and National Planning to provide more details of the approved budget.