What occurs when a central bank gives the government more money than is permitted by its own laws? Nigeria's alleged Ways and Means fiasco of 2023 is what you get. The central bank has recently provided the government with around N23.72 trillion ($53 billion) in loans through a program known as "Ways and Means Advances," but President Muhammadu Buhari and the senate are at odds about what should happen to them.
Instead of rolling the debt at the 19.5% interest rate he claims the central bank is now charging, the president wants to convert it into a 40-year bond with a 9% interest rate. However, some senators deemed the request unconstitutional. Buhari estimates that this will save Nigeria $4 billion in interest payments just this year. After ... By Sascovibesgh
Post a Comment