Despite the restructuring plan, the World Bank has predicted that interest payments on the Federal Government’s borrowing from the Central Bank of Nigeria will consume nearly 62% of government revenue by 2027.
According to a recent revelation from The Punch, the Federal Government borrowed N6. 31 trillion through Ways and Means Advances from the CBN in just 10 months. The Nigerian government was forewarned by the World Bank against funding deficits by borrowing from the CBN through the Ways and Means Advances in November of last year, claiming that doing so would put fiscal pressure on the nation’s spending.
The Federal Government has been borrowing from the CBN to cover budget deficits in spite of recommendations from experts and organizations. The Federal Government paid an interest of N2. 03 trillion starting in January 2020 to November 2021 according to The PUNCH.
“The Ways and Means balances as of 19th December, 2022, is N23,719,703,774,306. 90. However, the Senate rejected the request by the president to restructure the N23.7tn Ways and Means advances.