The Central Bank of Nigeria (CBN) earned only N3.1 billion in interest from the Federal Government’s overdraft in 2024 — a shocking drop from the N1.6 trillion it made just a year earlier. This no be small difference o, and e dey raise serious questions about what’s really going on with Nigeria’s money moves.
The money came from what they call the “Ways and Means” facility — that’s just a fancy name for the overdraft the government dey collect from CBN when kasala burst and dem need urgent funds. It’s meant to be a short-term fix, but in the past, it started looking like a regular habit.
According to CBN’s official statement, this interest was part of the bank’s “loans and receivables,” and it was charged using the Monetary Policy Rate plus 3%. But the real gist here is the serious drop — 99.8% down — which clearly shows that things are no longer business as usual.
One big reason for the drop is that the government converted N22.7 trillion of old overdrafts into long-term bonds in 2023. These bonds go stretch for 40 years, with a three-year grace period. The National Assembly even approved am, to reduce inflation wahala and make CBN’s books look better.
Fast forward to June 2024, Finance Minister Wale Edun talk say FG don repay N7.3 trillion out of that money. He also talk say dem no dey touch overdraft again — all expenses now go through a more “open and accountable” process.
Even CBN Governor Olayemi Cardoso come confirm say no more overdrafts until the old debts clear finish.
But make we no forget say na this same Ways and Means cause serious drama before. Former CBN boss Godwin Emefiele allegedly approved trillions without National Assembly consent — and people still dey vex for that one.
For now, it looks like the FG and CBN wan play by the rules. Whether dem go stick to am or not — we dey watch.
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