IMF asks CBN to stop waivers for banks

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The International Monetary Fund (IMF) has advised the Nigerian government against proposed amendments to the Act establishing the Central Bank of Nigeria (CBN), emphasizing the need to strengthen the apex bank instead.

This counsel was outlined in the Article IV Staff Consultation Report released by the IMF Board of Governors in Washington.

The IMF Directors supported Nigeria’s shift towards an inflation targeting regime but urged caution regarding any amendments that might compromise the autonomy of the CBN. They recommended bolstering central bank independence and communication to ensure a successful transition.

Furthermore, the IMF encouraged the Nigerian authorities to increase the minimum capital for banks and unwind regulatory forbearance introduced during the pandemic. They commended efforts to restart the cash transfer program to alleviate food insecurity and advocated for scaling it up.

Source: Punch

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