FG borrows additional N3.8trn from CBN in six months

The Federal Government in what appears to be Ways and Means has received an additional N3.8 trillion in the last six months.

This is based on preliminary data published in the last statistical bulletin for the first quarter of 2023, which was recently made public by the Central Bank, according to nairametrics.

The Central Bank of Nigeria’s figures show that the total amount increased from N4.4 trillion at the end of June 2023 to $8.2 trillion in December 2023, with a cumulative Ways and Means balance due by the Federal Government now standing at N8.2 trillion dollars.

This is despite a news report that President Bola Tinubu has not borrowed money from the Central Bank of Nigeria, as opined by the Minister of Finance and Coordinating Minister for Economy, Wale Edun.

Ways and Means is the money that the Central Bank of Nigeria lends to the Federal Government in the meantime to augment spending based on the time the revenue is generated.

As of May 2023, when President Tinubu took over, the total balance of the Ways and Means was N26.95 trillion.

However, the balance increased very sharply to N4.5 trillion in July and 5.1 trillion in August.

The total had increased to N8.21 trillion as of December 2023 showing that Ways and Means rose by 88% in six months.

Recall that the Governor of the CBN, Olayemi Cardoso, in February had said that the apex bank will no longer give Ways and Means to the President until the previous loans are repaid.

Under the previous administration, the then CBN governor, Godwin Emefiele, without approval from the National Assembly, allegedly printed the sum of N22.7tn for former President Muhammadu Buhari under Ways and Means.