The Central Bank of Nigeria (CBN) says it will continue to maintain the constitutional limit on Ways and Means Advances to the federal government, capping the advances at 5 per cent of the previous year’s actual revenue collection.
This limit is part of the CBN’s monetary, credit, foreign trade, and exchange policy guidelines for the fiscal years 2024-2025, published on Tuesday.
“Ways and Means Advances shall continue to be available to the Federal Government to finance deficits in its budgetary operations to a maximum of 5.0 per cent of the previous year’s actual collected revenue. Such advances shall be liquidated as soon as possible and shall in any event be repayable at the end of the year in which it was granted,” it said.
