President Bola Ahmed Tinubu has officially ended the era of inflationary borrowing from the Central Bank of Nigeria (CBN), a move expected to stabilize prices, strengthen the naira, and create a healthier business environment for small and medium enterprises (SMEs).
The decision halts the long-standing "Ways and Means" practice—where government borrowed directly from the CBN to finance deficits—one of the drivers of inflation and economic instability.
With this reform, all government spending will now be backed by real revenue and transparent borrowing, restoring fiscal discipline and investor confidence.
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For SMEs, the policy signals relief from rising input costs, currency volatility, and inflation-driven uncertainty that have hindered business planning and access to credit.
Economists say the move will encourage banks to lend more to the real sector, creating room for expansion and job creation.
The Tinubu administration noted that the decision forms part of its broader economic reform agenda aimed at building a stable, sustainable, and inclusive economy where small businesses can thrive.
