The provisional data obtained from the Central Bank of Nigeria shows that the Federal Government borrowing peaked at N1.83 trn through ways and means Advances in the first quarter of 2023.
This pushed its borrowing from the CBN to N25.36tn in March 2023 from N23.53tn in December 2022.
Central Bank Utilises Ways and Means Advances to Support Government in Times of Temporary Budget Shortfalls, Adhering to Legal Restrictions.
The figure was according to the provisional data from the apex bank through its quarterly statistical bulletin.
According to Section 38 of the Central Bank of Nigeria (CBN) Act of 2007, the apex bank is authorized to provide temporary advances to the Federal Government in cases where there is a temporary deficiency of budget revenue. The CBN has the discretion to determine the interest rate applicable to these advances, as stipulated by the law.