In the last six months of 2023, the Federal Government of Nigeria received an additional N3.8 trillion in what appeared to be a fresh Ways and Means borrowing, according to provisional data published by the Central Bank of Nigeria (CBN).
This is despite claims by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, that the President Bola Tinubu government had not borrowed money from the CBN.
Key Highlights:
The total Ways and Means balances due by the government grew to N8.2 trillion as at December 2023, up from N4.4 trillion at the end of June 2023.
The balances were securitized and included as part of the federal government’s domestic debt profile, with the total standing at N26.95 trillion when the Tinubu administration took over in May 2023.
The data shows a steady increase in the Ways and Means balances from July 2023, with the single largest additional borrowing of about N1.3 trillion in September.
By the end of 2023, the total Ways and Means balances had increased by 88% in just six months, raising questions about the government’s borrowing practices and transparency.
Implications and Concerns:
The discrepancy between the government’s claims of no borrowing and the CBN’s data raises concerns about the transparency and accountability of the government’s fiscal policies.
The rapid increase in Ways and Means borrowing could put additional strain on the government’s finances and potentially impact the country’s economic stability.
Experts and analysts will likely scrutinize the government’s borrowing practices and demand more clarity and transparency from the administration.
Overall, the revelations in the CBN’s data suggest that the government’s borrowing activities may not align with its public statements, raising important questions about the management of the country’s finances.
