The Central Bank of Nigeria (CBN) has recorded a significant ₦4.145 trillion drop in net loans and receivables in 2024, primarily due to reduced overdraft exposure to the Federal Government under the Ways and Means provision.
According to the apex bank’s audited financial statements, net loans and receivables declined from ₦16.122 trillion in 2023 to ₦11.977 trillion in 2024 at the bank level. At the group level, the figure fell from ₦15.091 trillion to ₦10.959 trillion, reflecting a similar ₦4.132 trillion contraction.
The largest component of this drop was the Ways and Means advances, a facility governed by Section 38 of the CBN Act, 2007, which permits the central bank to extend short-term loans to the federal government—capped at 5% of the prior year’s revenue.
However, under the previous administration, this ceiling was routinely exceeded, sparking widespread concerns about fiscal discipline, inflationary pressure, and the integrity of monetary policy management.
The 2024 decline suggests that the CBN, under new leadership, is attempting to realign with statutory lending limits and reduce its exposure to government borrowing.
Analysts say the adjustment marks a positive signal for fiscal responsibility and could enhance the CBN’s independence in managing inflation and stabilizing the naira.
