The Senate and the House of Representatives has passed a bill to increase the percentage of Ways and Means loans the Central Bank of Nigeria (CBN) can give to the Federal Government. 

The upper chamber of the Nigerian legislature raised the credit facility obtainable by the Federal Government from the apex bank from 5 per cent to 10 per cent.

Known as the Ways and Means, the apex bank offers short-term financing to the Federal Government to cover its budget shortfalls.

The Leader of the Senate, OPEYEMI BAMIDELE said the executive bill read for the first time is to enable the Federal Government to meet its immediate and future obligations owing to the government’s increasing needs for funds to finance the budget deficits and other expenses.

He added that the loans will lower the government’s borrowing cost by providing cheaper funds than the traditional borrowing method.

OPEYEMI and his colleagues argued that the margin of increase should be from 5 to 10 per cent.

After consideration in the Committee of the Whole, the executive bill scaled the third reading and was passed.

Like the Senate, the House of Representatives amended the CBN Act to raise Ways and Means from 5 per cent to 10 per cent.