The Nigerian Senate has passed a bill to amend the Central Bank of Nigeria (CBN) Act, raising the percentage of Ways and Means loans from 5% to 10%.

The bill, which was read for the first time at plenary on Wednesday, aims to enable the Federal Government to meet its immediate and future obligations, including financing budget deficits and essential government expenditures.

Leader of the Senate, Opeyemi Bamidele, explained that the loans will provide immediate funds to address budget shortfalls, maintain financial market stability, and stimulate economic activity.

Bamidele said the loans will be used for critical sectors like agriculture, healthcare, and infrastructural development, and will lower the government’s borrowing cost by providing cheaper funds than traditional borrowing methods. He assured that adequate monitoring of capital projects will be enhanced to ensure the funds are used for infrastructure and legacy projects.

The bill was passed after consideration in the Committee of the Whole, and President Bola Tinubu is expected to sign it into law.

This approval by the Senate comes after a controversy in the House of Representatives earlier in the day, where lawmakers clashed over a similar bill seeking to increase the ways and means cash advances.

The controversy began when Kingsley Chinda, the Minority Leader, proposed an amendment to reduce the advances to 2% but was rejected by the majority.

The minority lawmakers therefore staged a walkout.