The Central Bank of Nigeria stated it has injected a total of N9 trillion into the Nigerian economy as of September 2022.
This was revealed by the Governor of the Central Bank, Godwin Emefiele when he read statements of the communique of the monetary policy committee last Tuesday.
The apex bank claims it injected this amount into the economy in the last 3 years while also offering a 2-year moratorium for 10-year long-term facilities.
The intervention funds are part of its development finance activities aimed at spurring economic growth.
“Members noted that in the last 3 years, the CBN has injected over N9 trillion into the economy, in addition to offering 2- year moratorium for 10-year long-term loan facilities. The Committee believe that these interventions have significantly helped engendered growth,” Emefiele said.
Why this matters, the apex bank has funneled trillions of naira in several development finance activities, especially to the private sector.
While the central bank does not reveal the actual breakdown for all the amounts paid out, Nairametrics has been able to curate up to N4.5 trillion reported in some of its monetary policy communique.
While the intervention funds have helped sustain the rather tepid economic growth, it has also added to the money supply fueling inflation.
The CBN also captured this challenge when it stated “in light of the persisting pressures on inflation, the Committee encouraged the Bank to maintain a close watch on the inflationary implications of the interventions.”
This means it may stop intervening in the economy until the rate of inflation cools.
