In the latter half of 2023, the Federal Government of Nigeria saw a significant boost in funds, with an additional N3.8 trillion injected into what appears to be fresh Ways and Means borrowing.
This revelation comes from provisional data published in the Central Bank of Nigeria’s latest statistics bulletin for the fourth quarter of the year.
Despite assertions from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, that the administration led by President Bola Tinubu hadn’t borrowed from the CBN, the provisional data paints a different picture. The total figure surged from N4.4 trillion at the end of June 2023, indicating a cumulative increase in Ways and Means balances to N8.2 trillion by December 2023.
Interestingly, the total Ways and Means balances stood at N26.95 trillion in May 2023 when the Tinubu administration commenced, but these balances were subsequently securitized and included in the federal government’s domestic debt profile.
A breakdown of the data reveals that the balance at the end of June 2023 was N4.36 trillion, suggesting a possible transfer of prior month balances to the Debt Management Office.
From July 2023, the balances witnessed a steady increase every month, starting at N4.5 trillion in July and reaching N5.1 trillion in August, marking the first time it crossed the N5.1 trillion mark. September saw the most significant monthly increase, with balances soaring to N6.4 trillion, an addition of about N1.3 trillion. Subsequently, it climbed to N7.2 trillion in October before a marginal rise to N7.6 trillion in November.
By the year’s end, December saw the total hitting N8.21 trillion, implying an 88 per cent increase in Ways and Means borrowing over six months.
