The Senate has given approval to the sum of N22.7 trillion that was spent by the executive arm of government without the prior approval of the national assembly, News About Nigeria reports.
The upper legislative chamber approved the request after a report was presented by Senate Leader, Ibrahim Gobir.
The funds in question were borrowed by the federal government from the Central Bank of Nigeria through “ways and means advances”.
President Muhammadu Buhari made the request in December 2022, but some opposition senators objected to it.
They demanded that records of what the funds were spent on be provided before granting approval to the request.
After a thorough review, the Senate approved the request, thus giving the executive arm of government the green light to spend the funds.
The sum of N22.7 trillion is no small amount, and it is significant that the government was able to borrow such a large sum of money from the Central Bank of Nigeria through ways and means advances.
This type of borrowing is a form of short-term borrowing by the government, and it is used to finance its budget deficit.
The government is often faced with budget deficits, which occur when the government spends more than it receives in revenue.
To cover this shortfall, the government has to borrow money from various sources.
One of the sources available to the government is the Central Bank of Nigeria, which lends the government money through ways and means advances.
The approval of the N22.7 trillion by the Senate means that the government can now spend the funds on various projects and programs.
However, it is important that the government ensures that the funds are used wisely and judiciously.
