We’ll Stop Providing Loan For FG Until All Debt Are Cleared – CBN

The Federal Government will no longer receive Ways and Means from the Central Bank of Nigeria until outstanding loans are settled, according to a statement made by Governor Olayemi Cardoso of the institution. This choice is a component of the steps made to address the nation’s present economic problems. Funds provided to the Federal Government by the CBN to sustain expenditures while awaiting income generation are referred to as “ways and means.”

In a meeting with the Senate Committees on Finance, Appropriations, Banking, Insurance, and Other Financial Institutions, Cardoso made this declaration. The Senate had called a meeting of the economic team, which included the governor of the CBN and other ministers, to talk about the state of the economy, namely the weakening of the Naira and the increase in food costs.

Cardoso underlined that the CBN has tightened monetary policy in an effort to counteract inflationary pressures, pointing to advancements in ways and means and an expansion of the money supply as causes of inflation. He pointed out that the CBN Act’s goal of containing inflation is achieved by stopping methods and means advances. Cardoso also emphasized initiatives to fix the exchange rate and draw in foreign exchange.

In order to support Naira stabilization, he advised Nigerians to cut back on their consumption of dollars and imported items. Cardoso gave the Senate assurances that steps are being taken to stabilize the economy and lower inflation, with a reduction of 21.4% in inflation predicted by 2024. But in order to attain economic stability, he emphasized the necessity of cooperation between the CBN, the government, and individuals.