In a significant move, Nigeria's Senate amended a law to allow the federal government to borrow more money from the Central Bank. The amendments, approved during an emergency session, enable the government to raise its overdraft at the Central Bank of Nigeria from 5% to 15% of the previous year's revenue. The lower House of Assembly had already given its approval to the changes.

The timing of these amendments is crucial as they come just days before President Bola Tinubu assumes office. Tinubu will be facing numerous economic challenges, including sluggish growth, mounting debt, declining oil production, and double-digit inflation that has negatively impacted savings and wages.

Nigeria's expenditure has consistently outpaced its revenues, leading to widening deficits. To bridge the financial gap, the government has frequently relied on the central bank's overdraft facility, known as ways and means, often surpassing the 5% limit.

The amendment bill is expected to be signed into law by President Muhammadu Buhari, who concludes his tenure on Monday after serving the maximum two terms. This move follows the recent approval by the Senate and House of Assembly to convert 23.7 trillion naira ($52 billion) in central bank overdraft into long-term debt, as proposed by President Buhari.