FG Settles N4.83 Trillion CBN Ways & Means Loan Using NTBs
The Nigerian federal government (FG) has utilized a portion of the Nigerian Treasury Bills (NTBs) and Bonds, totaling N4.83 trillion issued in 2024, to settle Ways and Means advances from the Central Bank of Nigeria (CBN).
This disclosure came from Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a recent presentation at the Lagos Business School Breakfast Club titled, “Reconstructing the Economy for Growth, Investment, and Climate Resilience Development.”
In the previous year, the National Assembly sanctioned the securitization of the outstanding debit balance of N7.3 trillion of the Ways and Means Advance into the Consolidated Revenue Fund (CRF) of the Federal Government.
Olayemi Cardoso, the Governor of the CBN, emphasized that the apex bank would refrain from granting Ways and Means advances to the federal government until the outstanding balance is resolved.
Edun further elucidated that this move was part of the Federal Government’s initiatives to augment the supply of ‘sticky’ foreign capital into critical sectors of the economy.
Moreover, he outlined the Federal Government’s focal points aimed at fostering a 3.5 percent growth in the economy for 2024.
These endeavors encompass augmenting oil production to 2 million barrels per day, stimulating agricultural sector growth to 3 percent, and invigorating trade activities to bolster a positive current account.
“We have outlined a comprehensive execution strategy to achieve a 78 percent year-on-year increase in budgeted revenue for 2024, with a paramount focus on implementing an enhanced government revenue assurance model. We aim to curtail the budget deficit to 3.9 percent of GDP from 6.1 percent recorded in 2023,” he articulated.
