The Governor of Central Bank of Nigeria, Yemi Cardoso has said that the Ways and Means Advances to the Federal Government will be discontinued until the outstanding balance as at December 31st, 2023 is fully settled in compliance with section (38) of the CBN Act (2007).
Cardoso noted that the Bank will henceforth strictly adhere to the law limiting advances under Ways and Means to 5 percent of the previous year’s revenue, stating that the payment of the outstanding balance of the Ways and Means will control inflation in the country.
The CBN Governor also informed that the bank has also halted quasi-fiscal measures of over N10 trillion by the apex Bank of Nigeria under the guise of development finance interventions which hitherto contributed to flooding excess Naira and raising prices to the levels of Inflation we are grappling with today.
“The CBN’s adoption of the inflation-targeting framework involves clear communication and collaboration with fiscal authorities to achieve price stability, potentially leading to lowered policy rates, stimulating investment, and creating job opportunities.
“Our MPC meeting on the 26th and 27th of February is also expected to review the situation and take further decisions on these important issues”, Cardoso explained.
