New Data Reveals Federal Government Borrowed N3.8 Trillion From CBN Amid Official Denials

The Federal Government of Nigeria borrowed N3.8 trillion from the Central Bank of Nigeria (CBN) in the last six months of 2023, despite assurances from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, that the Bola Tinubu administration had not taken any new loans from the central bank.

The data, sourced from the CBN’s latest statistics bulletin for the fourth quarter of 2023, shows a consistent increase in the government’s borrowing through the Ways and Means facility, which is designed for short-term budgetary support.

The total outstanding balance under the Ways and Means mechanism grew from N4.4 trillion at the end of June 2023 to N8.21 trillion by December 2023. This represents an increase of 88 percent in just six months.

Notably, the Ways and Means balance stood at N26.95 trillion when the Tinubu administration assumed office in May 2023. The government later securitized this debt, integrating it into the broader federal domestic debt profile. Yet, subsequent borrowing through the CBN continued to climb month by month.

In July 2023, the balance increased to N4.5 trillion, then to N5.1 trillion in August. September saw the most significant monthly increase, with an additional N1.3 trillion, bringing the total to N6.4 trillion. The borrowing continued to rise, reaching N7.2 trillion in October and N7.6 trillion in November.

This borrowing trend has raised concerns about the government’s fiscal discipline and the potential impact on inflation and monetary stability. Despite official denials, the CBN’s data indicates a stark contrast to the government’s public statements, prompting questions about fiscal transparency and accountability.