Recent data released by the Central Bank of Nigeria (CBN) reveals a significant increase in government borrowing during the last six months of 2023 under the leadership of President Bola Tinubu.
The provisional figures indicate an additional N3.8 trillion, despite previous assertions by the Minister of Finance, Wale Edun, that the government hadn’t borrowed from the CBN.
The cumulative Ways and Means balances surged to N8.2 trillion by December 2023, up from N4.4 trillion at the end of June 2023. This rise contrasts with the securitization of balances as part of the federal government’s domestic debt profile, which stood at N26.95 trillion in May 2023.
A closer look at the data reveals a steady increase in balances, starting from N4.36 trillion in June 2023.
The trend continued, reaching N5.1 trillion in August, marking the first time it crossed the N5.1 trillion threshold. September saw the largest monthly increase, with balances soaring to N6.4 trillion, representing a staggering N1.3 trillion addition.
The upward trajectory persisted, hitting N8.21 trillion by December, indicating an 88% surge in Ways and Means borrowing within six months.