TUE SEPT 17 2024-theGBJournal|The Central Bank of Nigeria (CBN) said, in a new guideline published today, that it will sustain its Ways and Means advances to the Federal Government at a limit of 5% for the fiscal year 2024-2025.
”Such advances shall be liquidated as soon as possible and shall in any event be repayable at the end of the year in which it was granted,” the CBN said.
Through the Ways and Means Advances, the CBN lends money to the Federal Government to augment its spending, in the meantime, based on the time the revenue is granted.
According to the apex bank, ”Consistent with the banking arrangement of Treasury Single Account (TSA), Ways and Means Advances would now be determined after recognising the sub-accounts of the various MDAs, which are now linked to the Consolidated Revenue Fund (CRF) to arrive at the FGN consolidated cash position.
This would continue in the 2024/2025 fiscal years.
The CBN data shows that its cumulative Ways and Means Advances as of December 2023 stands N8.2 trillion.
Meanwhile, in the new Guideline, ‘Monetary, Credit, Foreign Trade and Exchange Policy (218 pages)’, the CBN also outlines the monetary, credit, foreign trade, and exchange policy guidelines applicable to banks and other financial institutions supervised by the CBN in 2024/2025.
The CBN said this may be adjusted by the CBN without prior notice, to address new developments in the domestic and global economies in the period.
”However, such amendments shall be communicated to the relevant institutions/stakeholders in supplementary circulars,” the CBN noted.
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