CBN Slashes Ways & Means Advances by 59% to Support Economic Reforms
Story Written by SpringnewsNG Media Limited
On May 5, 2025, the Central Bank of Nigeria (CBN) announced a significant reduction in the government’s Ways and Means borrowing, slashing it by 59%. The move is seen as a major step in aligning with ongoing economic reform efforts aimed at restoring fiscal discipline and curbing inflationary pressures.
The Ways and Means facility, which allows the federal government to borrow from the CBN to cover short-term spending gaps, has long been a subject of concern due to its inflationary impact and lack of transparency. The sharp cut signals the CBN’s renewed commitment to tightening monetary policy and supporting broader fiscal sustainability.
Economists have welcomed the decision, noting that reduced dependence on central bank financing will help stabilize the naira and build investor confidence. The move is also aligned with the goals of President Bola Tinubu’s economic reform agenda, which prioritizes transparency, accountability, and macroeconomic stability.
