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The federal government (FG) has stated that it is undergoing an audit of the N22.7 trillion Ways and Means loans from the Central Bank of Nigeria (CBN) to the federal government during the tenure of former President Muhammadu Buhari.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, emphasized that the audit is essential for the President Bola Tinubu-led administration to decide whether it will repay the loan.
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Edun mentioned that the CBN has expressed the need to eliminate Ways and Means, a position supported by fiscal authorities.
In a statement at the Public Wealth Management Conference organized by the Ministry of Finance Incorporated (MOFI), Mr. Edun explained that the audit is comparable to scrutinizing a bank loan account before making repayment decisions.
Additionally, he highlighted the importance of increasing revenue and reducing expenditure to bring down Ways and Means.
The conference aimed to develop strategies for managing the nation’s assets and resources effectively to improve citizens’ welfare.
Mr. Edun acknowledged the inherited challenges of rising commodity prices but assured that the administration is committed to addressing inflation by managing liquidity.
Furthermore, the administration, led by President Bola Tinubu, is overseeing an investigation by the Economic and Financial Crimes Commission (EFCC) into the tenure of former CBN Governor Godwin Emefiele, during which the Ways and Means loans were approved.
In May 2023, the Senate approved former President Buhari’s request to restructure the N22.7 trillion loans provided to the Federal Government by the CBN under the Ways and Means provision.
This provision allows the government to borrow from the CBN to address urgent financial needs arising from delayed government receipts or fiscal deficits.
