FG’s borrowing from CBN hits N19tn – Report 

June 14, 2022 0 By Admin
The Federal Government’s total borrowing from the Central Bank of Nigeria through Ways and Means Advances rose from N17.46tn as of December 2021 to N19.01tn as of April 2022.
According to data from the CBN, this represents an increase of N1.55tn within the first four months of 2022. The N19.01tn owed the apex bank by the Federal Government is not part of the country’s total public debt stock, which stood at N41.60tn as of March 2022, according to the Debt Management Office.
This report is coming in just as information indicates that Nigeria imports about 2.4 million metric tonnes of frozen fish annually which is taking a toll on the country’s foreign exchange reserves, the Federal Government lamented recently.
 Speaking to journalists on the sidelines of the Internal Coordination Meeting of Implementation of Fisheries Governance Project Phase Two in Abuja, the Minister of Agriculture and Rural Development, Mohammed Mahmood, said Nigeria’s annual fish demand was 3.6 million metric tonnes, but only 1.2MMT was produced domestically.
Mahmood, who was represented by the Director, Fisheries and Aquaculture, Federal Ministry of Agriculture and Rural Development, Ime Umoh, said, “Nigeria is a very large country and we need about 3.6MMT per annum but we are able to produce only 1.2MMT through the artisanal, industrial and aquaculture.
Said he “The deficit is being supplemented by frozen fish importation, which is being used to bridge the gap. It is not actually that we are going to have 2.5 million metric tonnes brought into the country, but we have a situation that we supplement with frozen fish imports.”

As was reported above the public debt stock only includes 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 through which the CBN finances the government’s budget’s shortfalls.
As stated in  Section 38 of the CBN Act, 2007, the apex bank may grant temporary advances to the Federal Government with regard to temporary deficiency of budget revenue at such rate of interest as the bank may determine. The Act read in part, “The total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government.