The Ways and Means Advance is a loan facility the central bank uses to finance the government during temporary budget shortfalls, subject to limits imposed by law.
According to Section 38 of the CBN Act, 2007, the apex bank may grant temporary advances to the Federal Government concerning the temporary deficiency of budget revenue at such interest rate as the bank may determine.
The Ways and Means Advance had been a subject of controversy.
Financial experts believed the CBN exceeded its lending threshold to the federal government.
Meanwhile, the Debt Management Office in May announced the securitization of CBN’s N22.7 trillion Ways and Means advance to the federal government.
Nigeria’s total debt stock rose to N49.85 trillion without adding CBN’s Ways and Means Loans.