Legal experts have analyzed the implications of the Central Bank of Nigeria’s (CBN) reaffirmation of its 5% borrowing cap under the Ways and Means facility for the fiscal years 2024-2025. The CBN’s facility allows the federal government to borrow up to 5% of the previous year’s revenue to address budget shortfalls, with repayment required within the same fiscal year.
In a statement, the CBN explained that this cap is part of its efforts to control inflation and curb excessive public borrowing. The facility, outlined in the CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines, is meant to provide short-term financing while limiting the risk of long-term fiscal instability.
Read Also: CBN Denies Ongoing Recruitment, Cautions Against Misleading Information
Prominent legal practitioners, including Dr. Olisa Agbakoba, SAN, and Professor Mike Ozekhome, SAN, have weighed in on the legal and economic ramifications of the CBN’s decision. Agbakoba noted that the 5% borrowing limit is a necessary measure to control public sector borrowing and inflation. He stressed that borrowing should be tied to productive purposes, warning that borrowing for recurrent expenditures could worsen inflationary pressures.
Ozekhome, in his analysis, pointed to the CBN Act of 2007, which allows the bank to advance funds to the government in cases of revenue shortfalls. However, he emphasized the need for National Assembly approval via a supplementary budget, cautioning that without this, the CBN’s actions could be seen as unconstitutional.
Public interest lawyer Opatola Victor further raised concerns about the potential for misuse of the facility, noting that improper management could lead to inflation, currency devaluation, and a growing national debt.
Read Also: ATICEN Calls on CBN for Better Fintech Regulations to Foster Growth
Below is how we can help you promote your event, organization and products/services . This is the best you can get from this global platform of over decades experience.
PACKAGE:
First Leg: Full page Promotional package showcasing your Invitation Card, Banner/Flex, 3 different Photographs and brief of the coming event. Also your picture/Name will be the headline News in digivation blog(Pre-Event)
Second Leg: Full Page Promotional package of the event showcasing 5 different photographs plus short audio/visual clip of the event. Also org. picture/Name will be the headline news our blog(Post-Event).
Rate: N150,000 Only For Both Pre and Post Events. (Rate is only Applicable during the Promotional Period)
For further inquiries, contact the undersigned:
Hilary Damissah (Editor)
Mojisola Alabi ( business Development)
Email: digivationtv@gmail.com
Chief Imo Ukwa(Advert Consultant) 08063779938
