According to information obtained by The PUNCH, the Federal Government borrowed N1. 15 trillion more than it had planned to. The paper states that between January and August 2022, the Federal Government expects to borrow N4. 07 trillion.
The amount of debt the Federal Government amassed throughout the review period, however, was N5.33 trillion, which is N1. 15 trillion more than the anticipated N4.07 trillion budgeted debt. Included in the debt owed to domestic creditors is the money the Federal Government borrowed from the Central Bank of Nigeria via the Ways and Means Advances.
The Federal Government borrowed a total of N4.61 trillion through Ways and Means Advances from the Central Bank of Nigeria between January and August 2022, according to a recent story in The Punch. This indicates that the Federal Government’s debt to the CBN accounted for the vast bulk of its domestic debt. According to the CBN’s website, the Federal Government’s borrowing from the bank via the Ways and Means Advances may have a negative impact on the bank’s monetary policy, which might harm domestic prices and exchange rates.
The government still intends to borrow N8. 4 trillion in 2023, despite the significant growth in debt over the years. The Federal Government’s propensity for debt, which experts have criticized as unsustainable, has come under fire.