FG borrowings from CBN reached N25trn in March – Report

The Federal Government (FG) has now borrowed N25.36 trillion from the Central Bank of Nigeria (CBN).

The borrowed amount was initially N23.53 trillion as at December 2022, but with an additional N1.83 trillion obtained from the apex bank through Ways and Means Advances in the first quarter of 2023, the entire borrowings has now reach N25.36 trillion.

The figure was seen in the CBN’s provisional data obtained through its quarterly statistical bulletin.

The Ways and Means Advances is a loan facility used by the CBN to finance the government in periods 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 (FG) with regard to temporary deficiency of budget revenue at such rate of interest as the bank may determine.