"President Tinubu's Government Surges: Borrowing N3.8 Trillion in 6 Months from CBN"

The government of Nigeria, under President Bola Ahmed Tinubu, has reportedly received an additional N3.8 trillion in Ways and Means Borrowing from the Central Bank of Nigeria (CBN) during the last six months of 2023, according to recent data published in the latest Statistics bulletin for the fourth quarter of 2023 by the central bank.

This provisional data indicates a significant rise from the N4.4 trillion balance recorded at the end of June 2023, resulting in cumulative Ways and Means balances due by the government reaching N8.2 trillion as of December 2023.

These figures directly contradict assertions made by the Minister of Finance, Wale Edun, who claimed during discussions with journalists at the Spring Meetings of the IMF and World Bank in Washington DC, United States, that Tinubu's government had not resorted to borrowing from the CBN.

However, the Total Ways and Means balance as of May 2023, when the Tinubu administration commenced, stood at N26.95 trillion. Notably, these balances were securitized as part of the federal government's domestic debt profile.

Further analysis reveals that the balances increased consistently from July 2023 onwards. By September, the total borrowing reached N6.4 trillion, representing a substantial monthly increase of about N1.3 trillion. The borrowing continued to climb, reaching N7.2 trillion in October and marginally increasing to N7.6 trillion in November. Finally, by the end of December 2023, the total hit N8.21 trillion, indicating an 88% increase in Ways and Means borrowing over the span of just six months.

This escalation in borrowing suggests a significant need for financing, potentially driven by budgetary shortfalls or expenditure requirements. However, such rapid accumulation of debt raises concerns about fiscal discipline and long-term sustainability.

The securitization of balances and their inclusion in the federal government's domestic debt profile indicates a strategic effort to manage the debt burden, albeit with potential implications for fiscal health and economic stability.

This development underscores the importance of transparency and accountability in government borrowing practices, especially concerning central bank financing. It remains to be seen how stakeholders, including policymakers, economists, and the public, will respond to these revelations and their implications for Nigeria's economic trajectory.

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