Nigerian govt’s borrowing from CBN jumps over 2000% in seven years

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The Federal Government’s borrowing from the Central Bank of Nigeria has jumped to N18.1 trillion.

The amount as it currently stands is a 2,701 per cent increase under the administration of President Muhammadu Buhari when compared to N648.26 billion it stood as of June 2015 a month after coming to power.

The Federal Government takes loans from CBN through the Ways and Means Advances facility used to finance the government in periods of temporary budget shortfalls subject to limits imposed by section 38 of the CBN Act, 2007.

Breakdown of CBN data published on its website shows in 2021 alone the government turned to the apex bank for a loan of N4.34 trillion to push its total debt to N17.45 trillion.

Another N704 billion was borrowed in January 2022.

A breakdown from CBN data shows that as at the end of 2015, CBN loan to the government stood at N856.33 billion before increasing to N2.23 trillion in December 2016.

The amount grew by N1.08 trillion in 2017 to N3.31 trillion. It rose further by N2.1 trillion in 2018 to N5.41 trillion.

Government borrowing from the CBN surged by 61.18 per cent (N3.31tn) to N8.72 trillion at the end of 2019.

Borrowings hit N13.11 trillion in 2020 after FG collected another N4.9 trillion to plug its fiscal financing gap.

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