The Central Bank of Nigeria’s advances to the federal government rose 2900 per cent in the last seven years to N23.8 trillion, an unprecedented rise that violated the law, stoked inflation and worsened the country’s debt burden.

Central banks sometimes help governments to fund budget deficits, but such loans, called Ways and Means Advances, are tightly controlled as they can fuel inflation and distort monetary policy.

In May 2015 when the Buhari administration came to office, the CBN’s loans to the federal government stood at N789.7 billion cumulatively. Since then, the government has drawn central bank loans each year at an unprecedented level.

Between January and October 2022 alone, the government drew N5.6 trillion. By comparison, between December 2012 (the earliest date the CBN has released data for) and May 2015, a period of two and half years, ways and means advances rose by N654.9 billion.

As his administration winds down, President Muhammadu Buhari made an attempt on Wednesday to obtain a delayed approval for the loan that had already been spent, causing an uproar in the Senate. Lawmakers rejected the request and accused the president of violating the constitution. They also demanded details of how the money was spent.

The CBN Act says the CBN may grant temporary advances to the federal government in respect of temporary deficit of budget revenue at such rate as the bank may determine. It however warns that the total amount of such advances outstanding “shall not at any time exceed five (5) percent of the previous year’s actual revenue of the Federal Government.”

In addition, it stipulates that, “All advances shall be repaid as soon as possible and shall, in any event, be repayable by the end of the Federal Government financial year in which they are granted and if such advances remain unpaid at the end of the year, the power of the bank to grant such further advances in any subsequent year shall not be exercisable, unless the outstanding advances have been repaid.”

Analysts say all requirements of that legislation have been breached by the CBN under Godwin Emefiele and Finance Minister Zainab Ahmed.

If the regulation had been followed, the ways and means to the government for the entire 2022 should not exceed N219 billion (5 per cent of the government’s revenue in 2021).

Yearly Advances

The bank’s loan as of December 2015 stood at N856 billion; it rose to N2.2 trillion in December 2016, and reached N3.3 trillion in December 2017.

By December 2018, the figure rose to N5.4 trillion and reached N8.7 trillion in December 2019. The amount was N13.1 trillion by December 2020 and N17.4 trillion by December 2021. It is now N23.8 trillion.

In October, the government said it was converting the CBN loans to bonds with a maturity of 40 years and an interest rate of nine per cent, effectively transferring the bill to the next generation.

Source: https://www.premiumtimesng.com/business/business-news/573152-how-cbn-loans-to-buhari-govt-climbed-2900-in-seven-years-in-violation-of-law.html

A prudent man in the person of PO will take care of the nonsense APCshit & poo'hari got Nigeria into...

Vote wisely

Peter Obi has so much work to do when he becomes president.

Buhari ruined everything he met.

This is unacceptable

WOW

Imposed on us by occultic laden tribe who worship their first king oduduwa as god. Blinded again, another dead wood is warming up from APC.
Funny enough they suffered most. Wailing in their poverty laiden villages gives me joy. So funny

nlfpmod:

Source: https://www.premiumtimesng.com/business/business-news/573152-how-cbn-loans-to-buhari-govt-climbed-2900-in-seven-years-in-violation-of-law.html

That is what you get for trusting ThiefNuibu with packaging a failure like himself as president in 2015.
From one Lagos progreThief looter to Abacha’s PTF associate.

oshozondii:
The Lagos State Government has borrowed over N126 billion domestically in the last quarter of 2021, the Debt Management Office (DMO) has said.

According to a report released by the DMO, Lagos, whose domestic debt stood at N532.12 billion as of September 30, 2021, is now owing N658.95 billion as at the end of December, 2021.

This represents an increase of N126.83 billion in the last three months of the year 2021, according to the DMO.

DAILY POST observed that Lagos is the State with the highest domestic debt figure as of the time under review.

Ogun State comes second with a total of N232.62 billion debt as of December.

Ogun’s debt profile rose from N192.41 billion to N232.62 within three months, making a debt increase of N40 billion.

https://dailypost.ng/2022/03/21/domestic-debt-lagos-borrows-over-n126bn-in-three-months-dmo-releases-other-states-figures/

If Saraki had made it to 2nd term as Senator President, he would have impeached this undisputed heavyweight champion of incompetence

Proceeds from oil boom during the Libya crisis in 2011 was enough to fund the national budget and save in the excess crude oil account. But proceeds from oil boom during Russian/Ukraine war is not enough to fund the national budget let alone save in the ECA account.

Why?

Simple, Buhari is doing the same thing that is done in Lagos state where they loot the IGR and borrow money to execute projects. Under Buhari, revenue from oil boom is looted completely, reason why Buhari intends to borrow 21 trillion naira which is the total amount of money needed to fund the 2023 national budget.

Serial failure

Just eight years and everything destroyed..

Godwin Emefiele is Aso rock cabal loyal dog, that's why he was never retired or sacked..

Only those doing the bidding of Buhari Aso rock cabal loyally, are enjoying the country called Nigeria...

Apc finished Nigeria

APC is a disgrace to this nation.. it's suprising that they're campaigning and Some Nigerians are still in support of their evil

Under APC the labour of our hero past is obviously in vain . Let's vote Obi to fix this.

Let hear what urchins will have to say about thesame government their master so much believe to do the work.

And same apc-shit party is planning to rule with another criminal for the next 8 years,, God forbid baton

K

Leprosy to every hand dat WI want to vote apc again

HIGHESTPOPORI:
Apc finished Nigeria

Yet some brilliant Nigerians want ThiefNuibu to continue with the destruction. Na which kind juju be that o

And lawan still dey approve more foolishly. More painful is, even with the borrowing dem still dey pad budget with trillions of naira. Nigeria na crime scene

and some people still want to vote APC. suffer no the tire una? who even unite Nigeria

Obi will transform naija....im sure

Why will any sane Nigerian vote for APC or PDP again?

It's time to vote wisely!

Woe to all agbado and mikano boys who will try to foist another failure upon Nigeria come 2023 again. We really need to get it right this time around or there would be no Nigeria to save again. cus everyone don tire at this point.

PMB and Emefiele have succeeded in emptying the coffers of the State, artificially increasing inflation, weakening the already fragile naira and plunging us deeper into poverty. The gross ineptitude shown by the goro-eating septuagenarian with regards to the economy has further thrown the country into economic abyss. We have to get it right in 2023. Any mistake to elect candidates cut from the same cloth as the president might have fatal implications for the common man. Get your PVC!

The people that supported this government are now trying to project the next person on their queue to take over. The worst of it all is that they are not living better lives than those who rejected their messiah.

Tochi3:
A prudent man will take care of the nonsense APCshit & poo'hari got Nigeria into...

Vote wisely

Yes ooo.

The government was quite wasteful and inconsiderate of future generations of Nigerians, who will inherit this debt.

And the clueless Minister of Finance could not advise properly. Which is why they replaced Kemi with Her.

Buhari does not believe in productivity. He sha know that money is somewhere. Spend spend spend spend