The Federal Government announced on Tuesday that it does not rely on ways and means to finance itself. During a briefing at the Federal Executive Council meeting presided over by President Bola Tinubu, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, clarified that no requests had been made to the President for funds from the Central Bank to cover liabilities such as external debt service or share capital cash calls, as reported by Punch.
Edun provided a positive outlook on Nigeria’s debt and revenue situation, highlighting significant achievements over the past year. He informed the Council about efforts to strengthen the Nigeria Customs Service and addressed past economic practices that had been burdensome.
According to Edun, Nigeria's total debt stock in US dollar terms decreased by 15 percent in the first quarter of 2024, which he described as a very positive development. However, he noted that the total debt stock in Naira terms increased by 25 percent due to exchange rate movements and domestic debt issuance.
The minister emphasized the government's robust revenue collection, attributed to technology-driven initiatives, and mentioned the implementation of expenditure controls. He stated that under President Tinubu, the federal government does not rely on ways and means for funding. Edun assured that at no time had they sought the President's permission to obtain funding from the Central Bank for any liabilities.
Edun said, “I can say quite categorically that under President Bola Tinubu, the federal government does not rely on ways and means to fund itself.
“At no time have we gone to Mr. President and requested permission to seek funding from Central Bank to pay anybody, be it external debt service, be it share capital cash calls or any other of the liabilities that the government has.”
He acknowledged that the current administration inherited N22.7 trillion in outstanding ways and means, which are being audited and securitized. Despite this, the current ways and means deficit stands at N3.4 trillion, offset by operating surpluses from revenue-generating agencies.
Edun explained that the inherited N22.7 trillion in outstanding ways and means, securitized just before President Tinubu's administration took office, is undergoing a forensic audit. He noted that any deficits in the consolidated revenue account might result from automatic debits on this figure, which is still being examined.