The Central Bank of Nigeria (CBN) has halted quasi-fiscal measures totalling over 10 trillion naira. The finance was issued by the CBN previously as development finance interventions. The cessation of quasi-fiscal measures by the CBN emerges as a response to empirical findings indicating that these measures to assist Micro,Small, And Medium Enterprises (MSMEs) have substantially increased the money supply, consequently contributing to the current inflation rates. Also, the size of the quasi-fiscal functions makes it easy for the CBN to lose sight of its core functions. This is largely because the independence of the CBN is weak and there is strong political pressure to make economic growth its primary function.
March 7, 2024
Nigeria Economic Update(Issue 7)
Related
Nigeria Economic Update (Issue 44)
Recently released Nigerias
petroleum imports data, show a significant decline in the quantity and value of
petroleum import products (PMS, AGO and NHK) between 2015 and 2016.
Specifically, value of imports significantly declined year-on-year (January to
April) by 30.4 percent to N571 billion in 2016. The huge decline in
the import of (refined) petroleum products likely reflects the lower
(unrefined) crude oil production/exports. Furthermore, it is likely that the
import of petroleum products could decline in subsequent years; however, this
is dependent on the prospects of the three domestic refineriesbeing refurbished.