Economy
Ways & Means hike: CBN may loan over N746bn to FG
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The Central Bank of Nigeria may print or wire over N746bn as a loan to the Federal Government based on the Ways and Means provision of the CBN Act.
In the Act, funds that the apex bank should provide to the Federal Government through Ways and Means is five per cent of the Federal Government’s previous year’s revenue.
Last week, the National Assembly raised the maximum borrowing percentage in the Act from five per cent to ten per cent.
Data from the National Bureau of Statistics on Saturday indicated that as of the third quarter of 2023, the Federal Government’s actual aggregate revenue was N7.46tn.
Based on the hike in Ways and Means funding approved by the National Assembly, the Federal Government would get no less than N746bn from the apex bank through the funding scheme.
The Ways and Means Advances are loan facilities used by the CBN to finance the government during periods of temporary budget shortfalls and are subject to limits imposed by law.
According to Section 38 of the CBN Act, 2007, the apex bank may grant temporary advances to the Federal Government with regards to temporary deficiency of budget revenue at such rate of interest as the bank may determine.
The Act read in part, “The total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government.”
The maximum borrowing percentage in the Act was hiked from five per cent to ten per cent by lawmakers last week, as they also rescinded and re-enacted the 2024 Appropriation Act through an amendment bill sponsored by leaders of both chambers.
In the Senate, the increase in the threshold was achieved through the consideration and passage of a bill sponsored by its Leader, Senator Opeyemi Bamidele (APC Ekiti Central).
In his lead debate, Senator Bamidele explained that the bill seeks to amend the CBN Act to increase the total CBN advances to the Federal Government.
He stated that the bill aims to help the government meet its immediate and future obligations due to the increasing need for funds to finance budget deficits and other expenses.
“The Central Bank of Nigeria’s advances to the Federal Government are essentially loans that the Central Bank of Nigeria provides to the government to help it meet its financial obligations. These advances are typically short-term and are expected to be repaid by the government,” he said.
Senator Bamidele explained that the request to increase the threshold from five per cent to fifteen per cent of the previous year’s revenue was made to provide immediate funds to address budget shortfalls, finance essential government expenditures, maintain financial market stability, inject money into the economy, and support critical sectors like agriculture, healthcare, and infrastructure development.
He said this would also lower government borrowing costs compared to traditional borrowing methods.
During the debate, many Senators supported the amendment but argued that the 15 per cent should be reduced to ten per cent.
However, the Federal Government had in the past taken excessive advantage of Ways and Means loans.
The administration of former President, Major General Muhammadu Buhari (retd.), had come under heavy criticism for abusing the Ways and Means.
From 2014 to 2023, the Federal Government collected N30tn through Ways and Means from the CBN without National Assembly appropriation.
Following this, the Senate set up an Ad-hoc committee led by Senator Isah Jibrin (APC, Kogi East), to carry out investigations.
Commenting on the development, financial analysts said the CBN would have to print more cash to meet the demands for increased funds through the Ways and Means advances, pointing out that this could further raise inflation.
An economist, Paul Alaje, expressed concern over the increase in Ways and Means advances to the Federal Government from five to ten per cent.
He said the move would lead to increased pressure on the CBN to print more money, potentially affecting the economy adversely.
Another economist at Lotus Beta Analytics, Shadrach Israel, also expressed concern over the recent increase, noting that it could lead to an increase in money supply and, subsequently, inflation.
He, however, acknowledged that the current upward trend in interest rates might mitigate the effects of the increase.
Recall that the Minister of Finance and Coordinating Minister of Economy, Wale Edun, said the N22.7tn printed by the CBN through Ways and Means overdraft for the Federal Government from 2015 to 2023, under former President Buhari, threw the country into the current inflation.
Telecommunication operators in Nigeria and other parts of Africa are expected to inject over $76 billion as capital expenditure (CapEx) into their various networks in five years.
GSMA said this projection is for between 2025 and 2030. It, however, said that for the investment to translate into improved coverage, quality and capacity, there is a need for an improved regulatory and cost environment.
According to the telecom body, markets that have reduced rights-of-way costs, enabled infrastructure sharing and provided regulatory predictability are seeing faster and broader capital deployment.
Infrastructure-sharing models in particular are emerging as a structural solution for extending coverage into areas where individual operator economics alone cannot justify the investment, it said.
MTN Nigeria’s quarterly CapEx this year has been extremely aggressive, starting with N390.3 billion in Q1 and reaching N620.5 billion by H1, while Airtel Africa invested $389 million in Q1 2026 alone, its highest first quarter rollout.
Both operators are front loading investments to expand 4G/5G coverage and fibre infrastructure.
For FY 2025, MTN Nigeria’s CapEx surged to N1 trillion, more than doubling from N443.5 billion in FY 2024. This was driven by aggressive investment in broadband coverage and spectrum leasing.
CapEx intensity stood at 19.3 per cent of revenue, reflecting heavy reinvestment into infrastructure.
Airtel Africa CapEx rose to $884 million in FY 2026, a 31.9 per cent increase year-on-year. The company rolled out over 3,250 new sites and expanded fibre by 3,200 km, with plans to accelerate spending to $1.1 billion in FY 2027.
Both operators are scaling aggressively to meet surging data demand and smartphone penetration.
MTN’s investment intensity is higher relative to revenue, while Airtel is focusing on pan-African expansion with Nigeria as a key growth driver.
For FY 2026, Airtel reported 47.5 per cent constant currency revenue growth in Nigeria, showing strong returns on its infrastructure push.
Airtel Africa is balancing pan African expansion with Nigeria as a key growth driver. Its CapEx is more diversified across regions but still heavily weighted toward network densification.
The National Insurance Commission, NAICOM, has revoked the operating licence of Nigeria Reinsurance Corporation over its failure to meet the statutory Minimum Capital Requirement, MCR, and appointed Dr. Muiz Banire, SAN, as Receiver/Provisional Liquidator to wind up the company’s affairs.
The appointment took effect on August 3, 2026, following the cancellation of the corporation’s certificate of registration by the insurance regulator.
In a public notice dated August 4, 2026, Banire said he was appointed by NAICOM, in exercise of its statutory powers, to take charge of the receivership and liquidation of Nigeria Reinsurance Corporation (RR-002).
According to the notice, the company’s licence was revoked after it failed to comply with the prescribed Minimum Capital Requirement applicable to its category of licence within the stipulated compliance period, in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other extant laws, regulations and guidelines.
Banire said his appointment empowers him to immediately trace, recover, secure and take possession of all assets belonging to the company, collate and settle its liabilities in accordance with the NIIRA 2025, liaise with NAICOM on matters relating to the liquidation, and submit periodic reports to the Commission.
He also directed banks, financial institutions, insurance policyholders and members of the public not to honour any instruction relating to the company except those issued by him or persons expressly authorised by him.
As part of the liquidation process, Banire announced that all bank accounts belonging to Nigeria Reinsurance Corporation had been frozen with immediate effect pending further directives from his office.
He warned that any transaction carried out without his authorisation would be at the risk of the parties involved.
“Members of the general public, banks and financial institutions in Nigeria are hereby informed that no financial transactions should be conducted pursuant to any instruction from anyone except those that I issue as the Receiver/Provisional Liquidator,” the notice stated.
According to him, only instructions bearing his official seal and stamp as a legal practitioner, or those issued by persons duly authorised by him, will be recognised throughout the liquidation process.
The regulatory action marks a significant enforcement measure by NAICOM and underscores the Commission’s resolve to ensure that insurance and reinsurance companies operating in Nigeria comply with statutory capital requirements designed to safeguard policyholders and strengthen the financial stability of the industry.
The liquidation process is expected to involve the recovery and realisation of the company’s assets, verification and settlement of valid claims and liabilities, and the orderly winding up of its affairs in accordance with the provisions of the law.
The public notice serves as formal notification to policyholders, creditors, banks and other stakeholders that all dealings concerning Nigeria Reinsurance Corporation must henceforth, be channelled through the Receiver/Provisional Liquidator until the liquidation process is concluded.
The Black Market Dollar-to-Naira Exchange Rate for 5th August 2026 Can Be Accessed Below.
NOTE: The exchange rate changes hourly. It depends on the volume of dollars available and the Demand. This means…you can buy or sell 1 dollar at a certain rate, and the price can change (high or low) within hours.
The official naira black market exchange rate in Nigeria today, including the Black Market rates, Bureau De Change (BDC), and CBN rates.
The exchange rate fluctuates hourly based on the supply and demand of dollars in the market.
What’s the dollar to naira black market today, 5th August 2026?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players sell a dollar for ₦1425 and buy at ₦1410 on Wednesday, 5th August, 2026, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Selling Rate ₦1425
Buying Rate ₦1410
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1364
Lowest Rate ₦1361
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