Ending Ways & Means financing helped curb inflation, boost reserves, says Tinubu

By Kunle Sanni

President Bola Tinubu says his administration’s decision to halt Ways and Means financing — a key driver of inflation in recent years — has helped stabilize Nigeria’s economy and restore fiscal discipline.

“We have discontinued Ways and Means financing, which had been a major contributor to high and persistent inflation,” Tinubu stated in a message marking the second anniversary of his presidency on Thursday.

Ways and Means financing allows the federal government to borrow directly from the Central Bank of Nigeria (CBN). The practice had been widely criticized for fueling inflation and undermining monetary policy.

In June 2024, the federal government repaid approximately ₦7.3 trillion in outstanding Ways and Means advances to the CBN.

Highlighting other economic gains, the president noted that the Nigerian National Petroleum Company (NNPC) has become a net contributor to the Federation Account following the removal of fuel subsidies. He also pointed to improvements in local refining capacity, which has enhanced fuel supply security.

On debt management, Tinubu said the country’s debt service-to-revenue ratio had dropped from nearly 100% in 2022 to below 40% in 2024, despite the effect of foreign exchange revaluation on overall debt levels.

“The country has also repaid its IMF debt and grown external reserves from $4 billion in 2023 to over $23 billion by the end of 2024,” the president said.

“Thanks to our reforms, state revenues increased by over ₦6 trillion in 2024, enabling governors to reduce debt, meet obligations, and invest in infrastructure and human capital,” he added.