The Federal Government has borrowed a total of N1.83 trillion from the Central Bank of Nigeria (CBN) through Ways and Means Advances in the first quarter of 2023.
Politics Nigeria reports that Ways and Means advances are used by the government to finance its budget deficit and other expenditures. The borrowings are usually repaid at a later date.
The federal government’s borrowing from the CBN increased from N23.53 trillion in December 2022 to N25.36 trillion in March 2023 due to Ways and Means Advances.
This was contained in CBN’s quarterly statistical bulletin.
The Ways and Means Advances is a loan facility used by the CBN to finance the government in times of temporary budget shortfalls, subject to limits imposed by law.
According to Section 38 of the CBN Act, 2007, the apex bank may grant temporary advances to the Federal Government with regard to temporary deficiency of budget revenue at such rate of interest as the bank may determine.
