Recent data from the Central Bank of Nigeria (CBN) reveals that the Federal Government borrowed a total of N6.07tn from the CBN through Ways and Means Advances in 2022.

This resulted in an increase in the Federal Government’s borrowing from the CBN, rising from N17.46tn in December 2021 to N23.53tn by December 2022.

The actual borrowing amount may exceed N6.07tn, as the debt had reached N23.77tn in October 2022. However, it appears that servicing the debt led to a slight reduction, bringing it down to N23.53tn by December.

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The Senate and the House of Representatives recently approved the President’s request for restructuring Ways and Means Advances, further contributing to the existing debt stock.

Ways and Means Advances allow the government to borrow from the CBN in the short term or during emergencies to fund fiscal deficits when expected cash receipts are delayed.

Due to significant revenue shortfalls, the government has heavily relied on the CBN to finance its expenditure programs through Ways and Means.

The Federal Government had previously stated that it would repay the loan using securities such as treasury bills and bonds.