The Nigerian federal government has utilized a portion of the Nigerian Treasury Bills (NTBs) and Bonds issued in 2024, totaling N4.83 trillion, to settle Ways and Means advances from the Central Bank of Nigeria (CBN). Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed this during a recent presentation at the Lagos Business School Breakfast Club titled “Reconstructing the Economy for Growth, Investment, and Climate Resilience Development.”

Last year, the National Assembly authorized the securitization of the outstanding debit balance of N7.3 trillion of the Ways and Means Advance in the Consolidated Revenue Fund (CRF) of the Federal Government. Olayemi Cardoso, the CBN Governor, stated that the apex bank would cease granting Ways and Means advances to the federal government until the outstanding balance is settled.

Edun clarified that this move is part of the Federal Government’s strategy to enhance the supply of stable foreign capital to vital sectors of the economy. Additionally, he outlined the government’s focus on three key areas to achieve a minimum economic growth rate of 3.5 percent in 2024.

These areas include increasing oil production to 2 million barrels per day, fostering a 3 percent growth in the agriculture sector, and promoting trade activities to bolster a positive current account.

“We have devised a robust execution plan aiming for a 78 percent year-on-year increase in budgeted revenue in 2024, with the implementation of an enhanced government revenue assurance model being crucial. Our target is to reduce the budget deficit to 3.9 percent of GDP from 6.1 percent in 2023,” he remarked.