Nigeria’s government has earmarked over 1.2 trillion nairas ($2.63 billion) to service the loans taken from the Central Bank of Nigeria through the ways and means advances in 2023, Ripples Nigeria reported, citing the 2023 fiscal framework document.

Ways and Means Advances is a loan facility used by the central bank to finance the government in periods of temporary budget shortfalls subject to limits imposed by law, the newspaper reported.

The government has allocated 6.31 trillion nairas to service its total debts. Out of the total amount, 3.3 trillion nairas will be used to service domestic debts, 1.81 trillion nairas for foreign debts and 1.2 trillion nairas for ways and means.

This is the first time the government has made a budgetary allocation for ways and means.

The newspaper reported that the government currently owes 22.7 trillion nairas and President Muhammdu Buhari recently sought the help of the national assembly to convert the loan to a 40-year debt.

(Editing by Seban Scaria seban.scaria@lseg.com)