January 30, 2021

CBN’s financing support to govt has created economic stability – ACJHR


*Says apex bank’s efforts be commended by Fitch Report,not undermined

By Joseph Erunke

ABUJA-The African Centre for Justice and Human Right,ACJHR ,has flayed criticism of the Central Bank of Nigeria,CBN, for providing financing support to the federal government.
The rights group said its reaction was in response to the position of Fitch Report,a global rating agency which had faulted the apex bank for providing financing support for the government.
Fitch Report had criticised the decision of the Central Bank of Nigeria to print more money to finance the federal government’s budget.

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Fitch, had in its report claimed that the repeated financing of government’s budget by the CBN through Ways and Means was a risk to Nigeria’s macroeconomic stability.
But the rights group in a statement by its Executive Director,Barr. Chinwendu Nduka-Edede,said the global rating agency was wrong in its position.
“ACJHR, as one of the critical stakeholders in the African and  Nigerian project however stands with the CBN and its Governor, Godwin Emefiele, on this very important matter,”it declared.
Going further,the group said:”We are of the opinion that the financing support the CBN is offering the Federal Government, contrary to Fitch’s position, has created a lot of economic stability in the system.
“We make bold to say that it is under the purview of the apex bank to offer the needed support as a lender of last resort if the Federal Government cannot provide the necessary fund for all its obligations.
“Rather than faulting the CBN for doing what it is expected to do in this kind of situation, Fitch report should be commending the apex bank.
“The ACJHR therefore calls on the Fitch and other organisations to desist from undermining the CBN’s gesture with distorted facts because this will not do the system and the country any good.”