The Federal Government of Nigeria has incurred an additional N3.8 trillion in Ways and Means borrowing from the Central Bank of Nigeria (CBN) in the last six months of 2023, according to provisional data from the CBN’s latest statistics bulletin for Q4 2023.
This increase raises the total balance to N8.2 trillion as of December 2023, contrasting with earlier statements from government officials indicating no new borrowing under President Bola Tinubu’s administration.
The Ways and Means mechanism allows the government to secure short-term or emergency financing from the CBN to manage cash flow shortages. Data shows a significant escalation in balances from N4.36 trillion at the end of June 2023, climbing steadily each month to reach N8.21 trillion by year-end—an 88% rise in just six months.
This development comes despite assurances from Wale Edun, Minister of Finance and Coordinating Minister of the Economy, asserting that the new administration had not engaged in new borrowing from the CBN. The discrepancy highlights ongoing challenges in managing the nation’s fiscal stability amid pressing economic needs. 
Historically, the total Ways and Means balances stood at N26.95 trillion when the Tinubu administration took office in May 2023. These were later securitized and included in the federal government’s domestic debt profile.
The National Assembly had previously approved the securitization of N22.7 trillion out of N23.3 trillion advanced by the CBN through Ways and Means, transferring this debt to the Debt Management Office (DMO) with a 40-year tenor and a 9% interest rate.
Further complicating the fiscal landscape, amendments to the CBN Act have raised the ceiling for Ways and Means Advances from 5% to 15% of the Federal Government’s previous year’s revenue. This adjustment paves the way for increased government borrowing, which could heighten the country’s debt service obligations.
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