• The Central Bank of Nigeria will continue to offer Ways and Means Advances to the federal government, maintaining a 5% limit based on the previous year’s revenue for 2024-2025
• The CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines outline that these advances must be repaid by the end of the fiscal year in which they are granted
• The CBN’s decision emphasizes fiscal responsibility, aiming to balance financial flexibility with sustainable economic management

The Central Bank of Nigeria (CBN) has announced that it will continue to provide Ways and Means Advances to the federal government, maintaining a cap of 5% of the previous year's actual collected revenue for the fiscal years 2024-2025. 

This decision was confirmed in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines published by the CBN on Tuesday, September 17.

The guidelines stipulate that these advances will remain available to finance budgetary deficits but must be repaid by the end of the fiscal year in which they are granted. 

The policy underscores the CBN's commitment to managing government financing while ensuring adherence to set limits and fiscal responsibility.

According to the published document, the CBN will offer Ways and Means Advances up to a maximum of 5.0% of the federal government’s revenue collected in the previous year. 

This measure aims to provide financial flexibility to address budgetary shortfalls while ensuring that such advances are promptly repaid. The CBN has emphasised that these advances are intended to be temporary solutions, to be liquidated as soon as feasible.

The CBN's decision aligns with its ongoing efforts to enhance fiscal management and control inflationary pressures. By setting a limit on these advances, the bank aims to prevent excessive borrowing and promote sustainable fiscal practices. 

This approach is part of broader guidelines designed to maintain economic stability and ensure that government finances remain within manageable bounds.

The CBN has reiterated its commitment to monitoring and enforcing the repayment of these advances. The guidelines make it clear that any funds borrowed under this scheme should be repaid by the end of the fiscal year, reinforcing the importance of fiscal discipline.

CBN says policies helped increase remittance inflows to $553m, slow down inflation in July

Meanwhile, TheRadar earlier reported the Central Bank of Nigeria’s (CBN) claims that its policies were instrumental to the increase in remittance inflows to an all-time high of $553 million in July and the slow-down of headline inflation to 33.40 per cent in July.

The amount, a 130 per cent increase from the amount recorded in the corresponding period in 2023, represents the highest monthly total inflows on record.