FG Borrowing From CBN Hit N25tn In March- Report

Based on the data, the Federal Government's borrowing from the CBN increased from N23.53......
By Johnson Atoukudu

In the first quarter of 2023, the Central Bank of Nigeria provided a Ways and Means loan of N1.83 trillion to the Federal Government. This information was recently revealed in the apex bank’s quarterly statistical bulletin.

Based on the data, the Federal Government’s borrowing from the CBN increased from N23.53 trillion in December 2022 to N25.36 trillion in March 2023, with the additional amount of N1.83 trillion.

The Ways and Means Advance is a loan facility utilized by the central bank to assist the government in managing temporary budget shortfalls, with certain legal limitations.

Section 38 of the CBN Act, 2007, permits the apex bank to provide temporary advances to the Federal Government to address temporary revenue shortfalls, at an interest rate determined by the bank.

The Ways and Means Advance has sparked controversy, as financial experts believe that the CBN has exceeded its lending threshold to the federal government. In May, the Debt Management Office announced the securitization of the CBN’s N22.7 trillion Ways and Means advance to the federal government.

Nigeria’s total debt stock has reached N49.85 trillion, not including the CBN’s Ways and Means Loans.

Related posts

Naira Appreciates Against US Dollar In Parallel Market

Waffi Tv

Dollar Scarcity: BDCs In Abuja Shut Down

Waffi Tv

Hackers Stole $2bn In Crypto In 2023

Waffi Tv

Leave a Comment