…Comercio Partners notes that this amendment aims to provide the federal government with short-term funding to address budget deficits and finance critical projects
MON AUG 12 2024-theGBJournal| The Nigerian Senate passed a bill to amend the Central Bank of Nigeria (CBN) Act, increasing the maximum allowable advances from the CBN to the federal government from 5% to 10%.
Initially proposed at 15%, the limit was reduced to 10% to ensure fiscal discipline, following suggestions from several lawmakers.
Comercio Partners notes that this amendment aims to provide the federal government with short-term funding to address budget deficits and finance critical projects.
Senate leader Bamidele Opeyemi emphasized the importance of this bill for maintaining financial market stability, stimulating economic activity, and supporting sectors like agriculture, healthcare, and infrastructure development.
Despite a motion to limit borrowing to capital expenditure, the bill was passed without this restriction, reflecting the urgent need for flexible funding options.
Opeyemi highlighted that this is the first time both the executive and legislative branches have passed a budget with more capital than recurrent expenditure, urging support for the bill to facilitate significant national projects and economic rejuvenation.
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