CBN loans to gulp N1.2trn of 2023 budget

The Federal Government has earmarked over N1.2 trillion to service the loans it got from the Central Bank of Nigeria through the Ways and Means Advances in 2023.

The details were contained in the 2023 fiscal framework document obtained by Ripples Nigeria.

Ways and Means Advances is a loan facility used by the central bank to finance the government in periods of temporary budget shortfalls subject to limits imposed by law.

Breakdown from the document showed the Federal Government allocated N6.31tn to service its total debts.

Read also:CBN to stop foreign charges on domestic card transactions —Emefiele

Out of the total amount N3.3tn will be use to service domestic debts, N1.81tn for foreign debts and N1.2tn for ways and means.

The document also showed that this was the first time the Federal Government was making a budgetary allocation for ways and means which has been a subject of controversies.

The federal government is currently owing CBN N22. 7 trillion and President Muhammdu Buhari recently sought the help of the National Assembly to convert the loan to a 40-year debt.

Buhari has failed to have his way as lawmakers raised concerns that the loan from CBN is not captured in the federal government debt plans over the years.

Should the lawmakers finally accept Buhari’s proposal, his administration would be leaving a whopping N77 trillion debt for the next government to pay.

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