In August 2022, the Federal Government obtained a N1. 46 trillion loan through Ways and Means Advances from the Central Bank of Nigeria. In sum, the FG borrowed N22.07 trillion from the CBN in August 2022, up from N20.61 trillion in July 2022.
The Federal Government borrowed a total of N4. 61 trillion from the central bank between January and August, according to CBN data.
To the detriment of domestic prices and exchange rates, the CBN has warned on its website that the Federal Government’s borrowing from it through the Ways and Means Advances may have a detrimental impact on the bank’s monetary policy.
The World Bank had previously cautioned the Nigerian government against funding deficits by borrowing from the CBN through the Ways and Means Advances; stating that doing so would put the country’s economy at risk.