Akpabio: Tinubu inherited economy weakened by Ways & Means

Senate President Godswill Akpabio, says President Bola Tinubu inherited a weakened economy shaped by past crude oil arrangements and extensive “ways and means” financing by the federal government.

Akpabio said this on Thursday while speaking with journalists after leading a delegation of senior senators on a Sallah homage to President Tinubu at his Lagos residence.

He explained that Nigeria’s economic challenges were tied to structural issues in the oil and gas sector, including what he described as “future sales” of crude oil, which limited immediate revenue inflows.

“It’s very difficult to grow a non-oil economy because what we met on the ground, we had what they call future sales and we were not making money on the crude oil that we produce because of future sales,” he said.

Ways and Means (W&M) in Nigeria is a CBN financing facility – essentially an overdraft– used to cover Federal Government budget shortfalls when revenue falls short. 

Former Minister of Finance, Wale Edun had said Ways and Means financing under the previous administration of President Muhammadu Buhari rose significantly, with estimates ranging from about N22.7 trillion to N30 trillion between 2015 and 2023.

The Senate President also criticised the use of “ways and means” financing, describing it as excessive government spending beyond earned revenue.

“We also had a situation of continuous expenses in the country as a result of what they call ways and means, which in a layman’s language was expending money and printing money without earning income,” he added.

Akpabio said the Tinubu administration had taken steps to correct some of these fiscal practices, including ending multiple exchange rates, subsidy-related distortions, and other economic measures he said had strained national finances.

He also noted that the removal of fuel subsidy had helped eliminate long queues at filling stations, while reforms were ongoing in tax harmonisation and revenue administration.