The Central Bank of Nigeria recorded a significant decline of N4.145tn in net loans and receivables in 2024, driven primarily by a reduction in its overdraft exposure to the Federal Government and changes across other loan categories.
According to the apex bank’s audited financial statements, net loans and receivables at the bank level dropped from N16.122tn in 2023 to N11.977tn in 2024.
At the group level, the figure declined from N15.091tn to N10.959tn, reflecting a N4.132tn drop. The most substantial adjustment came from the overdraft extended to the Federal Government under the Ways and Means provision.
The Ways and Means provision in Nigeria refers to the CBN’s practice of extending temporary advances to the Federal Government to cover short-term funding gaps.
Governed by Section 38 of the CBN Act, 2007, this facility allows the government to borrow up to 5 per cent of its previous year’s actual revenue.
However, this limit was exceeded under the previous administration, leading to concerns about fiscal discipline and monetary policy implications.
