Finance Minister Vows Responsible Budget Support As Nigeria Seeks $1.5bn World Bank Deal

Nigeria’s Finance Minister Wale Edun has stated that President Tinubu is committed to adhering to statutory limits when seeking budget support from the Central Bank of Nigeria.

Edun, who made this known at the ongoing World Bank/IMF Annual Meetings in Marrakech, stated: “Tinubu is dedicated to ‘keeping with the spirit and the letter’ of CBN’s autonomy.”

He also disclosed that Nigeria is in discussions with the World Bank for a $1.5 billion budget support.

Speaking at the event, Edun highlighted the global need for approximately one trillion dollars to address climate change, adding that climate financing offers relatively inexpensive options.

“We will explore green bonds and various other climate financing avenues,” he further noted.

This commitment to responsible budget support comes after criticism of former President Muhammadu Buhari’s administration for exacerbating the country’s debt burden by securing over N22.7 trillion in Ways and Means Advances from the apex bank.

Section 38 of the CBN Act sets limits on funds the Federal Government can borrow, restricting them to not exceed 5% of the previous year’s actual revenue, a limit that was exceeded during Buhari’s tenure.

In 2022, actual revenue generated by the Federal Government was N6.49 trillion, whereas Ways and Means Advances stood at N6.2 trillion, representing 138% of the 2021 revenue. Finance Minister Edun’s commitment to responsible budget support marks a new approach to fiscal management in Nigeria.