CBN Governor, Cardoso, Terminates Funding For FG Intervention Programmes

Eko Hot Blog reports that the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the financial institution would no longer fund intervention programmes.

Cardoso disclosed this on Friday when he appeared before the senate committee on banking, insurance and other finance institutions, in Abuja.

The apex bank chief said the apex bank had halted over N10 trillion quasi-fiscal measures which were disguised as “intervention programmes” over the years.

He also said at the forthcoming Monetary Policy Committee (MPC) meeting scheduled for February 26 and 27, the bank will review other situations and take further decisions on these important issues.

He said: “On our side at CBN, we have responded with significant monetary policy tightening to rein in inflationary pressures.

“We have also halted quasi-fiscal measures totalling over N10 trillion at the CBN previously disguised as development finance interventions. These measures have contributed to an increase in money supply, raising prices to the level of inflation we are grappling with today.

“On the issue of development finance, we are coming to terms with a large amount of liquidity that was pumped into the system that created a lot of distortions and a lot of it didn’t get to what it was designed to get to.

“All we are saying as the central bank is that we cannot engage in interventions.”

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