The Central Bank of Nigeria has said it will continue to pursue its developmental finance interventions across critical economic sectors of the country.
The CBN has, in the past five years, increased its level of involvement in agriculture, manufacturing, Micro, Small and Medium Enterprises and infrastructure.
However, the International Monetary Fund had in its 2019 Article IV Consultation on Nigeria, urged the CBN to discontinue its direct intervention in the economy and focus on its price stability mandate.
They encouraged the authorities to enhance transparency and communication and to improve the monetary policy framework, including using more traditional methods, such as raising the monetary policy rate or cash reserve requirements.
Though the Director, Corporate Communications, CBN, Mr. Isaac Okorafor, said the apex bank would continue its developmental finance interventions, IMF Article IV cannot take place because, in an economy where food constitutes over fifty per cent of price formation, a central bank cannot rationally go into inflation targeting unless it is assured that there will be a steady supply of food.
The World Bank had also in its latest report on the regional economy titled ‘Africa’s Pulse, said that the Nigerian economy had been slipping since 1995 and this had continued till 2018.
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