This was confirmed in a provisional data published in the latest statistics bulletin for the fourth quarter of the year recently released by the Central Bank of Nigeria (CBN).
In the latter half of 2023, the Nigerian government under the leadership of President Bola Tinubu witnessed a substantial influx of funds totaling N3.8 trillion, seemingly attributed to a fresh round of Ways and Means borrowing. This revelation emerged from provisional data disclosed in the latest statistics bulletin for the fourth quarter of the year, recently disseminated by the Central Bank of Nigeria (CBN).
Notably, this significant financial injection occurred despite assertions by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, that the President Bola Tinubu administration had refrained from borrowing money from the CBN. However, the CBN’s provisional data revealed a stark contrast, indicating a substantial increase from N4.4 trillion at the end of June 2023, thus culminating in a cumulative Ways and Means balance of N8.2 trillion by December 2023.
The journey of these balances traces back to May 2023 when the Tinubu-led government assumed office, with Ways and Means balances standing at N26.95 trillion. However, these balances were subsequently absorbed into the federal government’s domestic debt profile.
Delving into the specifics, the breakdown of the data elucidates that the balance as of June 2023 amounted to N4.36 trillion, hinting at a possible transfer of prior month balances to the Debt Management Office. Nevertheless, starting from July 2023, these balances experienced a consistent monthly escalation, surging to N4.5 trillion in July, followed by a notable increase to N5.1 trillion in August, marking the first instance of surpassing the N5.1 trillion threshold.
The trend continued unabated, with the total climbing to N6.4 trillion in September, registering the highest single-month increase of approximately N1.3 trillion. Subsequently, October witnessed a further ascent to N7.2 trillion before a marginal rise to N7.6 trillion in November. The culmination of the year in December saw the total reaching N8.21 trillion, signifying an 88 percent surge in Ways and Means balances over a span of six months.
These developments underscore a significant financial maneuvering within the Nigerian government’s fiscal landscape, prompting scrutiny and analysis of its implications for the nation’s economic trajectory and fiscal sustainability moving forward.