Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, declares to end the Ways and Means for Nigerian President. Ways and Means refers to the money the CBN lends to the Federal Government to increase spending until new money comes in.
Olayemi said that the President will not be able to get Ways and Means from the CBN until the government repays previous loans. According to him, this decision came as one of the measures made by the central bank to reduce the present economic crisis in Nigeria.
The former CBN governor, Godwin Emefiele, printed N22.7 trillion allegedly for former President Muhammadu Buhari under the previous administration. Godwin gave this massive amount to the President through Ways and Means without the consent of the National Assembly.
Olayemi and his economic team met with the Senate Finance and Appropriations. As well as Banking, Insurance, and Other Financial Institutions Committees on Feb 9, 2024.
The Senate summoned Olayemi Cardoso and Minister of Finance Wale Edun. As well as the Minister of Budget and Economic Planning, Atiku Bagudu, and the Minister of Agriculture, Abubakar Kyari.
The Senate called all these authorities to address the current economic situation. Nigeria is facing significant economic pressure, particularly Nigeria’s currency Naira decline and increase in food prices. The CBN governor stated they have responded with significant monetary policy tightening to reduce inflationary pressure.
Furthermore, the CBN governor is delighted to notice the efforts of Fiscal authorities to end Ways and Means. This is also under Section (38) of the CBN Act (2007). It means the CBN has no authority to make further ways and means to the Federal Government. This condition will continue until the remaining sum, as of Dec 31, 2023, is entirely settled.
According to Olayemi, the bank must strictly adhere to the law limiting advances under ways and means to five percent of the previous year’s revenue.
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