The Central Bank of Nigeria lent a fresh N3.8 trillion in Ways and Means to the federal government in the last six months of 2023.
According to CBN data for the fourth quarter of 2023 the total figure rose to N8.2 trillion in December from N4.4 trillion at the end of June 2023.
Total Ways and Means balances as of May 2023 when the Tinubu administration took over was N26.95 trillion. However, the balances were securitised as included as part of the federal government’s domestic debt profile.
The balance at the end of June 2023 was N4.36 trillion indicating that the prior month balances may have been moved to the Debt Management Office.
However, from July 2023, the balances increased every month, first to N4.5 trillion in July, then N5.1 trillion in August, crossing the N5.1 trillion mark for the first time.
By September, the total was N6.4 trillion, representing the single largest additional borrowing for a month with about N1.3 trillion. It then climbed to N7.2 trillion in October before rising marginally to N7.6 trillion in November.
At the end of the year, in December, the total hit N8.21 trillion, suggesting that Ways and Means increased by 88 percent in 6 months.
According to Section 38 of the CBN Act, 2007, the apex bank may grant temporary advances to the Federal Government about temporary deficiency of budget revenue at such rate of interest as the bank may determine.
