In a surprising revelation, data from the Central Bank of Nigeria (CBN) reveals that the Federal Government borrowed a staggering N3.8 trillion in the last half of 2023, contradicting earlier assurances by the Minister of Finance, Wale Edun, that no new loans had been obtained from the central bank under the Bola Tinubu administration.
According to the CBN’s latest statistics bulletin for the fourth quarter of 2023, the government’s borrowing through the Ways and Means facility saw a continuous rise, intended for short-term budgetary support. From June to December 2023, the outstanding balance under this mechanism surged from N4.4 trillion to a staggering N8.21 trillion, marking an alarming 88 percent increase within just six months.
Of particular concern is the fact that the Ways and Means balance was already at N26.95 trillion when the Tinubu administration took office in May 2023. Although the government securitized this debt, incorporating it into the broader federal domestic debt profile, subsequent borrowing through the CBN continued to escalate month after month.
The borrowing trend paints a troubling picture of the government’s fiscal discipline, raising worries about its potential