According to latest data from the Central Bank of Nigeria, the Federal Government borrowed N6.07 trillion from the apex bank through Ways and Means Advances in 2022. The Federal Government’s borrowing from the CBN increased from N17.46tn in December 2021 to N23.53tn in December 2022 as a result.
The PUNCH, on the other hand, stated that the Federal Government may have borrowed more than N6.07tn because the debt was N23.77tn in October 2022. It appears that debt payments may have decreased it marginally to N23.53tn by December.
The Ways and Means clause authorizes the government to borrow from the central bank in the event that it need short-term or emergency funding to support delayed government expected cash receipts and fiscal imbalances.
The federal government had said that the loan will be repaid through securities like as treasury bills and bonds issuance. With the approval by the Senate of the N22.7tn loan from the CBN extended to the Federal Government under its Ways and Means provision, Nigeria’s total debt will rise to N68.95tn.