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Through Ways and Means Advances, the Federal Government borrowed a total of N1.83 trillion from the Central Bank of Nigeria (CBN) in the first quarter of 2023.
Politics According to Nigeria, the government uses Ways and Means advances to pay for its budget deficit and other expenses. Typically, the loans are paid back later.
Due to Ways and Means Advances, the federal government’s borrowing from the CBN increased from N23.53 trillion in December 2022 to N25.36 trillion in March 2023.
The CBN’s quarterly statistical bulletin mentioned this.
The CBN uses the Ways and Means Advances credit facility to finance the government when there are brief budget gaps, subject to statutory restrictions.
According to Section 38 of the CBN Act, 2007, the apex bank may grant temporary advances to the Federal Government with regard to temporary deficiency of budget revenue at such rate of interest as the bank may determine.
