The Federal Government of Nigeria has reportedly accumulated an additional N3.8 trillion through Ways and Means Borrowing within the last six months of 2023, as revealed by the latest Statistics bulletin released by the Central Bank of Nigeria (CBN).
Despite previous statements by the Minister of Finance, Wale Edun, suggesting that President Bola Tinubu's administration refrained from borrowing from the CBN, the data indicates otherwise.
Ways and Means Borrowing serves as a mechanism for the government to secure short-term financing from the CBN to address cash flow gaps. The balances increased consistently each month, reaching a total of N8.2 trillion by December 2023.
This surge in borrowing has raised concerns about the country's debt profile and the burden of debt service obligations. Despite amendments to the CBN Act, which increased the limit of Ways and Means Advances, further borrowing could exacerbate the nation's financial challenges.
