The Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, is calling for an improvement in the security situation of the country as this will assist in addressing the supply bottlenecks and bring down high food prices.
The CBN Governor, Godwin Emefiele, who disclosed this while presenting the outcome of the the MPC meeting on Tuesday, said all interest rates were retained at the end of the May MPC meeting, a move targeted at allowing the growth witnessed to go higher in the country.
The MPC, while noting the drop in inflation after 19 months and fragile GDP growth of 0.51 per cent in the first quarter of 2021, commended banks for providing liquidity to stimulate output in agriculture, jobs, and manufacturing.
The MPC is also pushing for an increase in the targeted credit facility to 400 billion Naira from 300 billion Naira which is nearing full utilization
While expressing optimism that insecurity in the country will be better as of the fourth quarter of 2021 with the arrival of security assets for the military, Emefiele called on bandits to drop their weapons, leave the bushes, and embrace the anchor borrowers program or any other intervention program so as to contribute meaningfully to economic development.
The CBN Insisted that loans must be repaid as banks are requesting the funds and have written to the states and copied the CBN.
The Apex bank is, however, in talks with the economic council and Ministry of Finance on best modalities for repayment.
