The Central Bank of Nigeria (CBN) has reduced the Ways and Means borrowing facility to N2.8 trillion
According to the CBN Governor, Olayemi Cardoso, the adjustment, aimed at tightening liquidity and managing public debt, comes amid concerns over rising government borrowing costs.
Cardoso noted that the move signals the central bank’s effort to curb inflationary pressures and stabilise the financial system, stressing that lower short-term funding limits could impact government cash flow and market dynamics.
Analysts say the reduction may encourage more disciplined fiscal management, but caution that it could also strain budget execution if alternative funding sources are not mobilised promptly.
The CBN’s intervention highlights ongoing efforts to balance monetary policy with government financing needs in a challenging economic environment.
