The Federal Government’s attempt to securitise the Ways and Means Advances is a continued breach of the Central Bank Act of 2007, according to some lawmakers, lawyers and economists.
The Ways and Means Advances are a loan facility through which the CBN finances the shortfalls in the government’s budget.
According to Section 38 of the CBN Act, 2007, the apex bank may grant temporary advances to the Federal Government regarding temporary deficiency of budget revenue at such rate of interest as the bank may determine.
Section 38of the Act read in part, “(1) …the Bank may grant temporary advances to the Federal Government in respect of temporary deficiency of budget revenue at such rate of interest as the Bank may determine. (2) The total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government.
“(3) All Advances…
