The loan, intended to finance the National Social Safety Network Programme, was presented to the Senate by Buhari.

The loan from the World Bank is aimed at providing relief to the most vulnerable citizens following the removal of petrol subsidies. However, Ndume, in an interview with Trust TV, strongly criticized the loan, labeling it as “unconstitutional and unfair.”

He stated: “I will go to court on that because it is unfair, illegal, and unconstitutional. Let me give you an example: we are two here in the studio, and you say you are going to borrow one million and share it between the two of us. How would you select the recipients? Furthermore, if the burden of repayment falls on the two of us, that is acceptable, but in this case, all Nigerians will have to pay.

“If you randomly give Nigerians ₦4,000 today, how fair is that? It is unconstitutional because the Nigerian constitution does not allow for discrimination.

“These individuals will use their rhetoric to confuse this elderly man (referring to President Buhari), and he will simply approve it. He (Buhari) does not understand these things; they just want to embezzle the funds. We cannot continue to tolerate such practices.

“What they are focused on is what they can gain from it, not what Nigerians can benefit. You can quote me on that. If any of them come to challenge me on TV, I will explain myself. They are misleading the President.”

Lawmakers in the House of Representatives have also approved the loan application to the China Development Bank.

For the fiscal year 2023, the Federal Government proposed a N19.49 trillion budget, of which over half the funds will be borrowed.

The government intends to finance the massive budget with N7.4 trillion in domestic borrowing and N1.8 trillion in foreign borrowing.

Nigeria’s economic woes continue to deteriorate owing to the high inflation rates, high-interest rates, fuel subsidies, and declining revenues and reserves.

About 133 million Nigerians, (63% of the population, are poor, as measured in multiple dimensions. Because over half of Nigeria’s inflation is driven by rising food prices, many poor individuals and families face hunger.

In a motion titled ‘Rescission of the 2016–2018 Federal Government External Borrowing (Rolling) Plan,’ Abubakar Fulata, Chairman of the House Rules and Business Committee said: “The House notes that the 2016–2018 Federal Government External Borrowing (Rolling) Plan was approved by the Senate and the House of Representatives on March 5, 2020, and June 2, 2020, respectively.

“The House recalls that the National Assembly approved the sum of $22,798,446,773 only under the 2016–2018 Medium Term External Borrowing (Rolling) plan.

“The House is aware of the communications from the Federal Ministry of Finance requesting approval of modifications to the financing proposal for the Nigerian Railway Modernisation Project (Kaduna–Kano segment) occasioned by the COVID–19 pandemic, where of China Exim Bank withdrew its support to finance the project.”

“The House is also aware that, in order to secure funds for the project, the contractor (CCECC Nigeria Limited), in collaboration with the Federal Ministry of Transportation, engaged China Development Bank as a new financier in the amount of $973,474,971.38 only,” he added.

Fulata requested that the House “rescind its decision on the financier and harmonized terms and approve the change of financier from China Exim Bank to China Development Bank” in the circumstances.

The House also approved the following terms from the harmonized term sheet: Segment: Kaduna-Zaria-Kano; financier: China Development Bank; loan type: commercial loan; maturity: 15 years; currency: Euro; interest rate: 2.7% + 6 months Euribor; commitment fee: 0.5%; and upfront fee: 0.5%.

While the House authorized the restructuring of N1 trillion WMAs, lawmakers declined the CBN’s request for N22,719,703,774,306.90.

Ways and Means Advances is a loan facility used by the central bank to finance the government in periods of temporary budget shortfalls subject to limits imposed by law

This was based on the Joint Committees on Finance, Banking, and Currency, and Aids, Loans, and Debts Management’s recommendations, which were laid, debated and adopted by the House in plenary.

Musa Abdullahi, Deputy Chairman of the House Committee on Finance, presented the report.

The report partly read, “Based on the observations and the exigencies of the Federal Government’s current fiscal situation, the committees Recommends the following:

“(i) The approval of the requested restructuring of the N1 trillion additional Ways and Means Advances for implementation of the 2022 Supplementary Appropriations Act as passed by the National Assembly.

“(ii) Further engagement with the executive by the Joint Committee to allow for a thorough and detailed work and submissions on the larger part of the advances, which amounts to N22,719,703,774,306.90 only.”

On December 21, 2022, President of the Senate, Ahmad Lawan; and Speaker of the House, Femi Gbajabiamila, read out Buhari’s request to members of the respective chambers.

In the request titled ‘Restructuring of Ways and Means Advances,’ the President wrote, “The Ways and Means Advance by the Central Bank of Nigeria to the Federal Government has been a funding option to the Federal Government to cater for short-term or emergency finance to fund delayed government expected cash receipt of fiscal deficit.

“The Ways and Means balances as of 19th December 2022, is N23,719,703,774,306.90

“I have approved the securitization of the Ways and Means balances along the following terms: amount, N23.7tn; tenure, 40 years; moratorium on principal repayment, 3 years; pricing interest rate, 9 percent.

“Your concurrence and approval are sought to allow for the implementation of the same.”

Consideration of the presidential was stalled at the Senate as the proposal met stiff opposition in the chamber.

President of the Senate, Ahmad Lawan, after meeting with Buhari, had said the lawmakers would reconsider the request and pass the WMAs.