Federal Govt Overshoots 2024 Central Bank Credit Projection By N4Trillion, Credit To Hit N53.6Trillion By 2027
The net credit to government is projected to grow from N38.717 trillion in 2024, to N43.7 trillion in 2025, representing an increase of N5 trillion
ASaharaReporters’ review of the medium-term expenditure framework of the government has shown that the Central Bank of Nigeria’s credit to President Bola Tinubu’s government is expected to hit N53.6 trillion by 2027.
The net credit to government is projected to grow from N38.717 trillion in 2024, to N43.7 trillion in 2025, representing an increase of N5 trillion.
It is projected to increase to N48.8 trillion in 2026, showing new borrowings of N5.2 trillion between 2025 and 2026.
The CBN credit to government is expected to further increase to N53.8 trillion by 2027, showing a growth of N5 trillion between 2026 and 2027.
Nigeria has surpassed its target for CBN credit to government in 2024. As of September, the credit to the government stood at N42 trillion as against a projection of N38 trillion.
The CBN provides loan facilities to the federal government, known as a credit advance or overdraft on government accounts.
This financing aims to cover government shortfalls. However, concerns have been raised about the government’s reliance on loans to fund its fiscal activities.
