The Central Bank of Nigeria -CBN has earned 3.1 billion naira as interest on the Federal Government’s overdraft facility in 2024, down sharply from the 1.6 trillion naira it earned in 2023.
This is according to figures from the apex bank’s audited financial statements.
Reports say that the interest income, categorised under “loans and receivables” in the CBN’s 2024 financials, is tied to the controversial Ways and Means facility—an overdraft provided by the apex bank to the Federal Government to plug short-term fiscal shortfalls.
The CBN stated that included in interest income on loans and receivables is interest income on overdraft facility granted to the Federal Government, amounting to N3.1billion naira.
It said that the interest rate applied to the overdraft was the Monetary Policy Rate plus three percentage points.
