The Central Bank of Nigeria’s (CBN) provisional data has revealed a significant surge in the government’s Ways and Means balances, which grew from N4.4 trillion in June 2023 to N8.2 trillion by December 2023. This represents an 88% increase over six months.
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The Tinubu administration inherited a total Ways and Means balance of N26.95 trillion in May 2023, which was subsequently securitized and incorporated into the federal government’s domestic debt profile.
CBN Data Reveals Significant Increase in Ways and Means Balances
A breakdown of the data shows a steady increase in the balances from July 2023, with a significant jump of N1.3 trillion in September, the largest additional borrowing for a single month. The balances continued to rise, reaching N8.21 trillion by the end of December 2023.
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This development raises concerns about the government’s borrowing habits and the potential impact on the nation’s economy. The CBN’s data suggests that the government’s reliance on Ways and Means financing has increased significantly, which could have long-term implications for fiscal sustainability and debt management.
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Economic experts have expressed concerns about the rapid growth in Ways and Means balances, urging the government to adopt more sustainable financing options and implement measures to reduce its reliance on borrowing.
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The government has yet to comment on the CBN’s data, but the revelation is likely to spark a national conversation about Nigeria’s economic direction and the need for fiscal responsibility.
