Federal Government Initiates Audit of N22.7 Trillion Ways and Means Loan

The Federal Government has initiated efforts to audit the N22.7 trillion Ways and Means loan approved by the previous administration of former President Muhammadu Buhari. This was announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the Public Wealth Management Conference in Abuja. Edun revealed that details of the audit would be released soon, as part of the government’s commitment to managing the nation’s assets and resources for the benefit of the people.

The event, organized by the Ministry of Finance Incorporated (MOFI), was attended by Vice President Kashim Shettima, Minister of Industry, Trade and Investment Doris Uzoka-Anite, Minister of Agriculture Abubakar Kyari, Governor of Cross Rivers State Bassey Otu, World Bank representatives, and members of the private sector and diplomatic corps.

Edun emphasized the need to reduce liquidity and eliminate the ways and means provision, citing an inherited backlog of N22.7 trillion in loans. He likened the audit process to verifying the agreed sum before repayment, highlighting the importance of increasing revenues and reducing expenditure to bring down the ways and means.

Regarding rising food prices inherited from the previous administration, Edun reassured Nigerians of the government’s commitment to addressing the issue and tackling high inflation rates. He mentioned interventions such as releasing 42,000 metric tons of grains, with another 60,000 metric tons expected to be released soon.

It is important to note that in May 2023, the Senate approved the request of the then President to restructure the N22.7 trillion loans extended by the Central Bank of Nigeria (CBN) under its Ways and Means provision. This provision allows the government to borrow from the CBN for short-term or emergency financing to fund delayed government receipts.

Nairametrics