Emmanuel OchayiPresident Bola Tinubu’s administration has raised eyebrows with N2.94 trillion debt procured from the Central Bank of Nigeria (CBN) via Ways and Means Advances between July and December 2023.
In a plea to the Senate, President Tinubu underscored the urgent need to also approve the securitization of the outstanding balance, potentially reaching N7.3 trillion.
Join our WhatsApp ChannelHe stated, “It is highly imperative to securitize the outstanding Ways and Means Advance of the Federal Government of Nigeria before the end of the year 2023.”
Despite prior commitments to reduce dependence on this financing avenue, data from the Debt Management Office revealed that approximately N6.36 trillion might have been secured from the CBN throughout 2023.
During the Senate plenary, Tinubu emphasized diversifying approaches to reduce reliance on Ways and Means Advances for domestic debt servicing. However, the Federal Government spent about N3.23 trillion on domestic debt servicing in nine months, as highlighted by the Debt Management Office.
Legislative actions have expanded the borrowing limit from the CBN, raising concerns about the increased burden of debt service obligations for future generations.
Despite breaching the established borrowing limits, the Senate approved the securitization of the outstanding N7.3 trillion, aligning with President Tinubu’s request.
This escalating trend of borrowing and subsequent debt service obligations poses significant concerns about its impact on future generations, sparking debates and apprehensions about Nigeria’s fiscal future.
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