The Central Bank of Nigeria (CBN) has announced it will continue to cap its Ways and Means Advances to the federal government at 5% of the previous year’s revenue for the fiscal years 2024-2025. This policy was confirmed in the CBN’s “Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines” released on Tuesday.

According to the guidelines, the CBN will provide advances to cover federal budget deficits up to this limit, with the expectation that the funds will be repaid within the same fiscal year. The CBN reiterated its commitment to managing the advances responsibly to support Nigeria’s fiscal stability while ensuring timely repayment.

This policy aims to maintain fiscal discipline while assisting the federal government in addressing short-term budgetary needs.