CBN increases loans to govt by N3.77trn in two months

According to information provided by the Central Bank of Nigeria (CBN), government loans grew by N3.77 trillion in the first two months of 2023.

The trend was captured in the most recent statistics from CBN’s “Money and Credit Statistics,” which MINIECHAT received.

The numbers show that at the end of February 2023, the CBN’s total credit to the government was N28.43 trillion. The credit to the government (net) increased from N24.65 trillion in December 2022 to N26.63 trillion in January.

According to this, the CBN lent the government N1.9 trillion in January and N1.8 trillion in February.

Last year, the central bank faced harsh criticism for allegedly paying the FG via channels and practices that were outside the letter and spirit of the CBN Act 2007.

The CBN Act of 2007’s Section 38 specifies that the Bank “may issue temporary loans to the Federal Government in respect of temporary shortage of budget income at such rate of interest as the Bank may appropriate.”

“At no point will the total amount of such advances outstanding exceed five percent of the Federal Government’s real income for the preceding year.

The government has repeatedly borrowed from the CBN despite objections from economists and other professionals over the outstanding debts.

Miniechat

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