The Central Bank of Nigeria on Tuesday identified that Nigeria`s huge debts is the bane of her current economic and financial challenges.
In a report, read by the current CBN Governor, Mr.
Godwin Emefiele, the Monetary Policy Committee of the Central Bank of Nigeria said that the indebtedness is compromising the integrity of the financial system.
Emefiele, emphasized that FG should promote an enrichment of fiscal and other sector initiatives and
interventions in a bid to overcome the growth challenges in the economy.
In his words, the CBN Chief said, “Members stressed the need for a robust and
more keenly coordinated macroeconomic policy framework that would restart
output growth, stimulate aggregate demand and rein in inflation expectations.
“The MPC urged the Federal Government to urgently assess the
extent of its indebtedness to domestic economic agents and develop a framework
for securitising the debts in order to settle its outstanding domestic
contractual obligations, which cut across all sectors of the economy.
“These accumulated debts have slowed the business activities
of economic agents, most of who are indebted to the banking system, thus
compromising the integrity of the financial system. It also advised the bank
(CBN) to commit to greater surveillance and deployment of early warning systems
in managing the banking system.”
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