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FG Borrowed N6.3trn Through Ways And Means In 10 Months — CBN

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The federal government borrowed N6.3 trillion from the Central Bank of Nigeria (CBN) in the first 10 months of 2022 (January- October), data from the apex bank shows.

The federal government has been borrowing from the CBN through “Ways and Means Advances”.

Ways and Means is a loan facility through which the CBN finances the government’s budget shortfalls.

The data, obtained from CBN’s website, showed that the Ways and Means’ debt climbed from N17.5 trillion in December 2021 to N23.8 trillion in October 2022 – an increase of N6.3 trillion in 10 months.

Analysis (by TheCable Index) shows that the federal government borrowed N704.3 billion from the CBN in January, N226.3 billion in February, N507.7 billion in March, and N112.3 billion in April.

It also borrowed N569.6 billion in May, N335.8 billion in June, N695.2 billion in July, N1.46 trillion in August, N749.4 billion in September, and N957.2 billion in October.

These borrowings are currently not included in the country’s total public debt stock (federal and state governments) which currently stands at N42.84 trillion.

Section 38 of the CBN Act, 2007, stipulates that the total amount of Ways and Means Advances outstanding shall not at any time exceed 5 percent of the previous year’s actual revenue of the federal government.

But the federal government’s borrowings from the apex bank has repeatedly exceeded the 5 percent threshold.

“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,” the act reads in part.

In a statement on its website, the CBN said financing the government deficit through Ways and Means Advances could frustrate its efforts in pursuing its monetary policy.

“The direct consequence of central banks’ financing of deficits are distortions or surges in the monetary base, leading to adverse effects on domestic prices and exchange rates i.e macroeconomic instability because of excess liquidity that has been injected into the economy,” CBN explained.

Multilateral organizations such as the International Monetary Fund (IMF) and the World Bank have repeatedly advised the federal government to cut back on its request for loans from the CBN.

Meanwhile, the federal government, in October, announced plans to repay the debt owed to the CBN with securities such as treasury bills and bonds issuance.

BIG STORY

NDLEA Seizes Lipsticks Stuffed With Drugs At Lagos Airport [VIDEO]

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Officials of the National Drug Law Enforcement Agency have uncovered another batch of female lipsticks containing illegal drugs at the Murtala Muhammed International Airport in Lagos.

Femi Babafemi, the agency’s Director of Media and Advocacy, revealed this in a post shared on his X (formerly Twitter) page on Sunday.

He also urged Nigerians, particularly women, to be extremely vigilant when purchasing or accepting beauty products, especially from unfamiliar sellers or dubious online platforms.

The statement read, Ladies beware! It does appear like female lipstick is becoming attractive as an instrument for concealment and trafficking now with yet another consignment of factory fitted female lipsticks stuffed with illicit substances intercepted at MMIA barely a week after @ndlea_nigeria officers uncovered a similar cargo at a courier company in Lagos.

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BIG STORY

JUST IN: Former President Buhari Dies In London Clinic

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Former Nigerian leader, Muhammadu Buhari, passed away on Sunday.

His longtime media aide, Garba Shehu, confirmed the news in a brief statement issued on Sunday afternoon, stating that the former president died at a clinic in London.

Shehu’s message, distributed to the media, read:
“INNA LILLAHI WA INNA ILAIHIRRAJIUUN. The family of the former president has announced the passing on of the former president, Muhammadu Buhari, GCFR, this afternoon in a clinic in London. May Allah accept him in Aljannatul Firdaus, Amin.”

The statement concluded with the date: July 13, 2025.

Although the cause of death was not disclosed, Buhari, who held office from 2015 to 2023, had frequently sought medical care in the United Kingdom during and after his time as president.

Buhari, a retired Major General in the Nigerian Army, first led Nigeria as a military head of state from 1983 to 1985. Decades later, he was elected president through a democratic process. He made history as the first opposition candidate to unseat a sitting president in Nigeria.

Funeral plans have not yet been made public.

 

More to come…

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No Effective Governance Without Full Local Government Autonomy — Femi Gbajabiamila

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The Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, has stated that governance at the local government level cannot be effective without complete autonomy.

He made the remark while addressing journalists after voting in the Lagos State local government elections in Surulere on Saturday.

When asked about the progress of implementing the LG autonomy ruling by the Supreme Court one year after it was delivered, Gbajabiamila described the process as ongoing and said it would be completed with time.

Gbajabiamila said, “The ruling was welcome by everybody. It’s the execution of that ruling and the implementation of that ruling that we are still trying to dot the Is and cross the Ts.

“I believe in a matter of time, we will realise full autonomy. There cannot be effective governance without full autonomy. That’s what we are working toward.”

In July 2024, the Supreme Court granted autonomy to all 774 local government areas across the country following a case filed by the federal government through the Minister of Justice and Attorney General of the Federation. However, the ruling is yet to be fully implemented.

Following the judgement, the Senate urged state and local governments to immediately adhere to the court’s directive, especially regarding local government accounts and direct fund disbursements.

The Senate also moved to amend relevant sections of the Constitution to ensure full local government autonomy nationwide.

The announcement was made by Deputy Senate President Senator Jibrin Barau, after lawmakers emerged from a closed-door session where they discussed alleged efforts by some state governments to bypass the Supreme Court’s ruling on July 11.

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