According to information obtained by the media, in the first quarter of 2023, the Federal Government borrowed N1.83 trillion from the Central Bank of Nigeria through Ways and Means Advances.
In March 2023, instead of N23.53 trillion in December 2022, this increased its borrowing from the CBN to N25.36 trillion.
The figure came from the apex bank’s quarterly statistical bulletin, which only provided preliminary data.
With restrictions established by law, the central bank uses the Ways and Means Advances borrowing facility to finance the government during brief budget difficulties.
In accordance with Section 38 of the CBN Act, 2007, the apex bank may make short-term advances to the federal government in the event of a temporary shortfall in budgetary revenue at an interest rate that the bank deems appropriate.
