The Central Bank of Nigeria has reduced the loans of the Federal Government by N4.145 trillion in 2024.
This was revealed in the apex bank’s audited financial statements for 2024.
The feast was achieved largely because of the slash in net loans and receivables, driven primarily by a reduction in its overdraft exposure to the Federal Government and changes across other loan categories.
The report stayed that the net loans and receivables at the bank level dropped from N16.122 trillion in 2023 to N11.977 trillion in 2024.
While at the group level, the figure declined from N15.091 trillion to N10.959 trillion reflecting a N4.132 trillion drop, the report revealed.
The report stated that the most substantial adjustment came from the overdraft extended to the Federal Government under the Ways and Means provision.
The Ways and Means provision in Nigeria refers to the CBN’s practice of extending temporary advances to the Federal Government to cover short-term funding gaps.
It is governed by Section 38 of the CBN Act, 2007, and it allows the government to borrow up to 5 percent of its previous year’s actual revenue.
