The Federal Government has announced plans to pin down Ways and Means advances to address the issue of excessive money in the system and fight inflation.
The Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun, made this announcement in Washington DC after meeting with investors during the ongoing spring meetings of the International Monetary Fund and the World Bank.
In February, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, stated that the bank would stop giving Ways and Means advances to the federal government until all outstanding debts are repaid.
However, Edun said the fiscal and monetary authorities are also working towards reducing inflation.
“The two authorities are working together to reduce inflation and pressure on price stability and stabilize the exchange rate with the goal of lowering interest rates so that investors can borrow at a more affordable rate in order to move the economy in the right direction again,” Edun said.
“We need to borrow less and focus more on collecting resources within the country. We want long-term resources to avoid repayment and refinancing pressures.”
Speaking further, the minister stated that the current administration is addressing food security by giving priority to farmers’ access to their land, particularly in areas where insecurity has significantly hindered food production.
Edun added that agro clusters are being created in cooperation with the African Development Bank (AfDB) to increase food production in the country.
