CBN Defends Policies, Responds to NESG’s Claims

120 Viewed Nwolu Obiajulu 19 responds
CBN Defends Policies, Rebuffs NESG Claims
Nwolu Obiajulu

The Central Bank of Nigeria (CBN) has defended its intervention programmes aimed at stimulating economic growth, saying it everted food crisis during the peak of COVID-19 lockdown.

This was stated in a statement by the CBN titled, “Re: Matters of Urgent Attention,” signed by its Director, Corporate Communications, Mr. Isaac Okorafor, which was in response to claims by the Nigerian Economic Summit Group (NESG), that its stimulus programmes were without policy clarity.

According to a statement released on Monday, NESG had alleged a huge loophole between food production and the needs of Nigerians despite the enormous sums disbursed by the CBN under its intervention programs.

The CBN, in its reaction defended its action claiming its intervention packages were channeled to sectors critical to improving livelihoods and reducing poverty, The Cable reports.

The statement read in part, “We are comforted by the NESG’s reluctant admission that many Central Banks around the world are also engaging in similar actions,” the statement read.

“It is important for the NESG to note that our intervention programmes in the agricultural sector were a key contributor to the resilience of the agricultural sector during the crisis, as
the sector experienced positive growth of 1.6 percent in the second quarter of the year despite the lockdown.

“As the NESG may be aware, as a result of the COVID-19 pandemic, Vietnam, Cambodia, India, and Thailand placed export restrictions on the exports of critical food items, including rice and eggs.

“With these disruptions, the Nigerian economy could have faced a major food crisis, but for the government’s intervention programmes in the agriculture sector.

“By alluding to the fact that money cannot address constraints in the agriculture sector, the NESG failed to realize that access to credit is listed among the three major challenges faced by farmers and businesses in Nigeria.”

The communique revealed that 103,189 Nigerians benefitted N59.12 billion through the NIRSAL Microfinance Bank as part of its development finance activity as of August 2020.

According to the CBN, in contrasts to allegations of its lending process lacking proper framework, it carried out due diligence of applicants before disbursements were given to beneficiaries.

It said, “The PFIs expend extensive due diligence on these intervention loans as the risk of default lies with them.”

The apex bank added that despite not being opposed to the reopening of borders, economic sabotage arising from the smuggling of commodities forms the rationale behind the closure.

It referenced the International Trade Centre as saying Benin Republic imports as much as rice as China and nearly as much frozen chicken as the United Kingdom.

“In which country does the NESG think all these rice and chicken end up? How then can a Nigerian rice farmer or poultry owner survive?” it said.

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chinese pizza🍕Sure For You 💯Aunty Ada🎄K E M I S O L Anwa_daddy Recent comment authors
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D É M Á Y Ó
Guest

Defending is not okay, explain those policies properly, that’s all NESG wants

Your Favorite CORRUPTION 💥
Guest

CBN defending a policies that subject average Nigerians to poverty. See the Apex bank of my country. So petty

AKEEM THE DREAM
Guest

Why won’t they rubbish what doesn’t favor them

A D E N I Y I
Guest

Defending but can’t explain. Can you see that something is wrong

EL CHAPO ➐
Guest

CBN defending the truth that subject alot of Nigerians to poverty this country we are all finished 🤦🏾‍♂️

Tosin 🍋
Guest

Not surprised but disappointed

Ònilé Santiago ⚔️
Guest

We need a proper explanation instead of all these happenings

Ajibade The Electrician
Guest

CBN are defending but the can’t explain. CBN should do better

Aunty Ada🎄
Guest

Pls how did they defend the policy. All their plan is to increase poverty
CBN is corrupt

Gifted
Guest

NESG claim didn’t favour them. No wonder CBN rebuffed it

Timi Jaden
Guest

When things are not going their way then they will scatter table 😢

Sure For You 💯
Guest

CBN defending policies with no evidence

Olatunde
Guest

If I may ask , can CNB explain the policies they are defending

BBNaija Vibes #BBNaija
Guest

I just don’t why CBN is so Defensive, why not look at what NESG said careful.

DetounStitches 💛
Guest

Defending the truth

nwa_daddy
Guest

Very disappointing

LIVIA 🧚🏼‍♀️🧚🏼‍♀️
Guest

CBN is just defending lies , this country is so filled with bad people , NESG Is actually right

K E M I S O L A
Guest

CBN is defending their pocket

chinese pizza🍕
Guest

What’s there to defend? We want facts please