According to research, the Federal Government intends to spend N1.2 trillion servicing the loans it received from the Central Bank of Nigeria through the Ways and Means Advances. Fitch Ratings, a major credit rating organization, had expressed worry over the Federal Government’s recurrent use of its ways and means facility with the central bank in January 2021.
The Federal Government has continued to borrow money from the CBN to cover budget deficits in spite of recommendations from experts and organizations. Despite the restructuring plan, the World Bank predicted that interest payments on the Federal Government’s borrowing from the CBN would consume nearly 62% of government revenue by 2027.
This increased the amount borrowed by the Federal Government from the CBN from N17.46 trillion in December 2021 to N23.77tn in October 2022.The N23.77tn owed to the apex bank by the Federal Government is not part of the country’s total public debt stock, which stood at N44.06tn in the third quarter of 2022, according to the Debt Management Office.
