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FG Owes CBN N15.51tn, Borrows N14.86tn Under Buhari
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BIG STORY

FG Owes CBN N15.51tn, Borrows N14.86tn Under Buhari

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The Federal Government’s total borrowing from the Central Bank of Nigeria through Ways and Means Advances has ballooned to N15.51tn, rising by 2,286 percent in six years, data collated from the CBN have shown.

The N15.51tn owed by the Federal Government to the central bank is not part of the country’s total public debt stock, which stood at N33.11tn as of March 2021, according to the Debt Management Office.

The public debt stock comprises the debts of the Federal Government of Nigeria, the 36 state governments, and the Federal Capital Territory.

Ways and Means Advances is a loan facility used by the central bank to finance the government in periods of temporary budget shortfalls subject to limits imposed by law.

According to Section 38 of the CBN Act, 2007, 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 Act says, “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.

“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.”

In the first six months of this year, the Federal Government borrowed N2.4tn from the CBN, more than half of what it got in the whole of last year.

The N2.4tn is also much higher than five percent of the Federal Government’s retained revenue of N3.9tn in the previous year.

As of June 2015, a month after the President, Major General Muhammadu Buhari (retd.) came into power, the total government borrowing from the apex bank stood at N648.26bn.

It jumped from N856.33bn in December 2015 to N2.23tn in December 2016, the CBN data show.

The total borrowing from the bank grew by N1.08tn in 2017 to N3.31tn. It rose further by N2.1tn in 2018 to N5.41tn.

The Federal Government’s borrowing from the CBN surged by 61.18 percent (N3.31tn) to N8.72tn at the end of 2019.

Last year, the government turned to the apex bank for a record N4.9tn to plug its fiscal financing gap, bringing its total borrowing to N13.11tn as of December 2020.

A global credit rating agency, Fitch Ratings, had in January raised concerns over the Federal Government’s repeated recourse to its ways and means facility with the central bank.

According to the agency, the use of central bank financing in Nigeria, which predates the COVID-19 pandemic shock, could raise risks to macro-stability in the context of weak institutional safeguards that preserve the credibility of policymaking and the ability of the central bank to control inflation.

“The CBN’s guidelines limit the amount available to the government under its WMF to five percent of the previous year’s fiscal revenues. However, the FGN’s new borrowing from the CBN has repeatedly exceeded that limit in recent years, and reached around 80 percent of the FGN’s 2019 revenues in 2020,” it said.

In February, the International Monetary Fund said Nigeria’s monetary policy operational framework should be reformed in the medium term, adding that the central bank financing of budget deficit should be phased out in order to reduce inflation.

“The increasing reliance on CBN overdrafts has come with negative consequences. The financing is costly for the Federal Government at interest rates of MPR plus 300 basis points, and for the CBN, with sterilization done through the issuance of OMO bills,” it said.

The IMF added that the complete removal of central bank financing of fiscal deficits would require higher domestic revenue mobilization.

The Washington-based fund had on April 28, 2020, approved Nigeria’s request for emergency financial assistance of $3.4bn to support the country’s efforts in addressing the severe economic impact of the COVID-19 shock and the sharp fall in oil prices.

In a letter of intent to the IMF, the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, and the CBN Governor, Mr Godwin Emefiele, said the recourse to central bank financing would be eliminated by 2025.

They added that the existing stock of overdrafts held at the CBN would also be securitized.

BIG STORY

JUST IN: Tinubu Approves Establishment Of Committee To Oversee Implementation Of Tax Reforms

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President Bola Tinubu has approved the establishment of the National Tax Policy Implementation Committee (NTPIC), a new body tasked with overseeing the execution of the administration’s tax reforms.

The development was announced on Friday in a statement issued by Bayo Onanuga, the president’s special adviser on information and strategy. He said the committee is expected to drive the implementation of the government’s tax initiatives in alignment with the economic priorities of both the administration and the Nigerian people.

According to the statement, the NTPIC will coordinate and monitor ongoing reforms aimed at strengthening the national tax system, enhancing revenue mobilisation, and supporting broader economic objectives.

 

More to come…

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BIG STORY

Ndume Backs Withdrawal Of Police From VIPs, Says ‘Some Ministers Attach Officers To Wives, Children’

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Ali Ndume, the senator representing Borno South, has declared his full support for the directive ordering the withdrawal of police officers attached to very important persons (VIPs) across the country. His remarks followed President Bola Tinubu’s instruction on Sunday directing the removal of police personnel from VIP protection roles.

The presidency had earlier explained that the withdrawn officers would be redeployed to core policing functions as part of efforts to address rising insecurity. According to Bayo Onanuga, the president’s special adviser on information and strategy, the measure forms part of a broader national security strategy aimed at strengthening police efficiency and improving public safety.

The Inspector-General of Police (IGP), Kayode Egbetokun, subsequently confirmed that 11,566 officers had been withdrawn in compliance with the presidential directive. He stated that the reassigned personnel would reinforce frontline security operations nationwide.

Speaking during an appearance on Channels Television’s programme, Politics Today, Ndume described the directive as one of Tinubu’s “most commendable decisions” and urged immediate implementation. He noted that many VIPs, including some ministers, had officers attached not only to themselves but also to their spouses and children.

Ndume said he expected to see an immediate reduction in police presence around government institutions. “We should see it on the ground,” he said, adding that he was surprised to still find numerous police officers around the National Assembly on Thursday.

The lawmaker revealed that he had personally rejected the number of officers previously assigned to him. “I was attached three policemen but that was a big crowd for me so I refused,” he said. He explained that he insisted on having only an orderly if any security personnel were to be assigned to him.

Ndume further argued that the role of an attached officer is primarily to monitor movement rather than provide personal protection. He maintained that all officers deployed to VIP security assignments should be withdrawn and returned to community policing functions.

He criticised what he described as excessive privilege among some public officials, noting that some lawmakers and ministers have police officers assigned to their wives and children. “What’s their business with that?” he asked.

The senator recalled visiting the home of a colleague and discovering “more than 10 policemen” assigned to him despite the colleague being junior to him in the Senate hierarchy. He added that some VIP convoys were so large that they created the impression that the president or vice-president was travelling.

Ndume argued that even the president’s own convoy required downsizing, insisting that national security resources should be focused on safeguarding communities rather than individuals. “Secure the place and when the president goes, you withdraw,” he said.

He concluded that Nigeria’s security architecture must prioritise territorial safety, noting that once a city like Abuja is effectively secured, residents would be able to move freely, including at night. He added that such an approach aligns with security practices in many other countries.

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BIG STORY

US Orders Review Of All Green Cards Issued To Migrants From 19 Countries, Exempts Nigeria [SEE FULL LIST]

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The United States government has ordered a comprehensive review of all Green Cards issued to citizens of 19 countries following Wednesday’s attack on National Guard troops in Washington, D.C. The decision was made public on Thursday as authorities identified the suspect as a 29-year-old Afghan national who previously worked with American forces in Afghanistan.

According to AfghanEvac, an organisation involved in relocating Afghans after the 2021 Taliban takeover, the suspect received asylum in April 2025 rather than permanent residency.

In a statement released on X, the Director of the US Citizenship and Immigration Services (USCIS), Joseph Edlow, said, “I have directed a full-scale, rigorous re-examination of every Green Card for every alien from every country of concern.” He added that the directive followed the president’s order to heighten scrutiny of migrants from specific nations.

The report notes that an earlier directive had already placed nearly all nationals from 12 countries, including Afghanistan, under a full travel ban.

Below is the complete breakdown of the affected countries as structured under the new review:

Countries with Full Travel Ban (12)

Afghanistan

Myanmar

Chad

Congo-Brazzaville

Equatorial Guinea

Eritrea

Haiti

Iran

Libya

Somalia

Sudan

Yemen

Countries with Partial Ban (7)

Burundi

Cuba

Laos

Sierra Leone

Togo

Turkmenistan

Venezuela

The announcement marks a significant expansion of the administration’s immigration restrictions, which officials say are part of broader efforts to reassess vetting procedures following the Washington attack. Authorities added that the review would complement ongoing measures aimed at tightening entry requirements for individuals from nations classified as high-risk.

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