- The International Monetary Fund has advised the Central Bank of Nigeria to reduce the way it gives out loans to Nigerians
- According to the IMF, the loans were a result of the pandemic which has stalled and the CBN needs to look at its role
- But the Nigerian government believes the interventions are necessary as they have helped in reducing shocks in the economy
The International Monetary Fund (IMF) has asked the Central Bank of Nigeria (CBN) to reduce the number of loans or credit facilities it gives to Nigerians because they may cause distortions in the market.
The IMF said the loans are a reaction to troubles caused by the COVID-19 pandemic, according to a report by The Punch.
What the IMF is saying to the CBN
In a report titled Nigeria Staff Report for the 2021 Article IV Consultation, the IMF stated that as it strengthens, the CBN needs to pull back its loan intervention programmes which were ramped up as part of the pandemic crisis response.
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According to the Washington-based organization, the Nigerian apex bank's internal and external tools comply with international standards, saying the CBN Act needs to be brought up to date to modern realities to strengthen its independence, governance and also to set price stability its main reason.
The report said the apex bank’s apparent involvement in lending activities be phased out while financial practices are supported through full adoption of International Finance Reporting Standards.
Nigerian government disagrees with IMF
The Nigerian government, however, believes that the bank’s multiple roles are justified as it is leading a frail recovery.
CBN gifts Over 300,000 businesswomen N159.2 billion as credit facilities
Legit.ng has reported that the Central Bank of Nigeria (CBN) said it has disbursed about N159,21 billion to 330,128 women under the Targeted Credit Facility (TCF) which is meant to support families, Micro, Small and Medium Enterprises (MSMEs) which has been impacted by the COVID-19 pandemic.
The CBN governor, Godwin Emefiele stated this at the Gender Equality Today for Sustainable Tomorrow programme in Abuja on Friday, March 18, 2022, according to a report by Nairametrics.
Emefiele said the bank has supported women with other intervention projects like the AGSMEIS, MSMEDF and other projects in addition to giving gender-targeted regulations to give way to gender diversity and inclusion at the management levels in banks.