BREAKING: Tinubu Ends CBN Borrowing to Curb Inflation, Stabilise Naira
President Bola Ahmed Tinubu has formally halted the Federal Government’s reliance on the Central Bank of Nigeria (CBN) for Ways and Means financing, a practice that has been widely blamed for fuelling inflation and putting pressure on the naira.
The decision, which aligns with the Fiscal Responsibility Act, is aimed at enforcing stricter fiscal discipline and ensuring that government spending is backed strictly by revenue and legitimate borrowing.
Under the previous arrangement, the Federal Government obtained overdrafts from the CBN to fund budget deficits — a move economists say contributed significantly to money supply growth, rising inflation, and exchange rate instability.
By ending the practice, the Tinubu administration hopes to ease inflationary pressures and give the apex bank greater room to focus on its core mandate of price and monetary stability.
Economic analysts have described the development as a major shift in Nigeria’s fiscal framework, with potential to boost investor confidence and strengthen the naira in the medium term.
The CBN, under Governor Yemi Cardoso, had previously emphasised the need to phase out Ways and Means lending to restore monetary policy credibility and reduce distortions in the financial system.
