The Central Bank of Nigeria (CBN) has disclosed that its loans to government have increased by N3.77 trillion during the first two months of 2023
Information obtained in CBN’s latest data on “Money and Credit Statistics,” captures the development.
According to the data, the total credit from CBN to the government stood at N28.43 trillion at the end of February 2023.
In January, the credit to the government (net) was N26.63 trillion, an increase from N24.65 trillion in December 2022.
This indicates that the government received N1.9 trillion in credit from CBN in January and N1.8 trillion in February.
The apex bank was under severe criticism last year over the ‘illegal’ funding of the FG through ways and means that contravene the provision of the CBN Act 2007.
Section 38 of the CBN Act, 2007 states, “The Bank may grant temporary advances to the Federal Government in respect of temporary deficiency of budget revenue at such rate of interest as the Bank may determine.
“The total amount of such advances outstanding shall not at any time exceed five percent of the previous year’s actual revenue of the Federal Government.
Despite concerns from economists and experts regarding the outstanding loans, the government has consistently borrowed from the CBN.(ripplesnigeria)