The Senate has given its approval for an increase in the Ways and Means loan available to the Federal Government.

This revision raises the limit from five percent to fifteen percent, as specified in the Central Bank of Nigeria Act.

The objective of this decision, according to lawmakers, is to enable the government to fulfill its present and future obligations in terms of National Assembly-approved ways and means and advances provided by the Central Bank of Nigeria.

“Ways and Means” refers to the revenues and methods employed by a political entity to generate the funds required for its functioning.

The concept originated in the English Parliament and pertains to the provision of revenue to meet national expenditure and implement economic policy objectives.

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Essentially, it is a means for the Federal Government to raise funds by borrowing from the Central Bank, typically through bonds or Treasury bills.

These funds assist the government in bridging financial gaps and supplementing spending until revenue is generated within the same year.

The amendment to the CBN Act, sponsored by Senator Ibrahim Gobir, seeks to increase the maximum CBN advances to the Federal Government from five percent to fifteen percent.

The senator argues that this adjustment is crucial to facilitate significant projects aimed at revitalizing and stimulating the economy.

The Senate’s recent approval also includes the restructuring of the N22.7 trillion loan extended to the Federal Government under the Ways and Means provision, as requested by President Muhammadu Buhari.