The Central Bank of Nigeria has said that credit to the Federal Government increased by N11.33tn or 57.11 per cent to N31.15tn in August from N19.83tn in July.
The latest Money and Credit Statistics from the CBN, according to a media report, revealed a trend of fluctuating borrowing by the three tiers of government from commercial lenders over the past months.
In June, the credit figure stood at N23.93tn, up from N19.98tn in April, but lower than the N28.38tn reported in May.
Read also: Why CBN is losing battle to stabilise naira
The first quarter of the year also showed varying levels of borrowing, with credit reaching N23.52tn in January, peaking at N33.93tn in February, and then dropping to N19.59tn in March.
The steady borrowing trend highlights the Federal Government’s growing reliance on CBN facilities to fund capital projects, debt servicing, and other fiscal obligations, Punch report said.
Economic analysts, according to the Punch report have raised concerns about the long-term sustainability of this borrowing, saying it could further strain the economy and contribute to inflationary pressures.
The report also revealed a dip of N777.13bn or 1.03 per cent in credit to the private sector, which stood at N74.73tn in August, down from N75.51tn in July.
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