FG Again Rush to CBN for Money, Borrows Over N3 Trillion in Six Months
- The Nigerian government has once again collected a loan from the Central Bank of Nigeria's Ways and Means
- The loan from the CBN to the federal government is to be used to meet the budget deficit and complement revenue from oil and other sources
- The CBN Act of 2007 gives the apex bank the right to grant temporary advances to the Federal Government
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends
The Nigerian government has borrowed N3.8 trillion from the Central Bank of Nigeria through Ways and Means Advances between July to December 2023.
This was captured in CBN economic data for the fourth quarter of 2023 published on its website.
Source: UGC
Breakdown of FG's borrowing from CBN
According to the data, the total ways and means balances as of May 2023 when the Tinubu administration took over were N26.95 trillion.
The balance at the end of June 2023 was N4.36 trillion, indicating that balances from the prior month may have been moved to the Debt Management Office.
However, from July 2023, the balances increased every month, reaching N4.5 trillion in July and N5.1 trillion in August.
By September, the total was N6.4 trillion, representing the single largest additional borrowing for a month, amounting to approximately N1.3 trillion.
It then climbed to N7.2 trillion in October before rising marginally to N7.6 trillion in November.
At the end of the year, in December, the total hit N8.21 trillion, indicating an 88 percent increase in Ways and Means over 6 months, adding N3.8 trillion.
Nigeria successfully repays Chinese, World Bank loans
Legit.ng previously reported that Nigeria spent about 277.64% on external debt servicing in Q3 of 2023, according to data from the Debt Management Office (DMO).
An analysis of the data indicates that external debt servicing stood at $368.26 million in the second quarter of 2023.
The figure increased to $1.39 billion, showing a 277.64% rise in the three months under review.
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Source: Legit.ng
