Raises concerns over fiscal sustainability
James Emejo in Abuja
A report by the Alliance for Economic Research and Ethics (AERE), yesterday criticised commercial banks for abandoning their core intermediation role to support economic growth as N91.1 trillion remained sterilised at the Central Bank of Nigeria’s (CBN) standing deposit window.
The report lamented the scale of idle liquidity parked at the CBN, noting that this represented not financial strength, but a structural failure of credit allocation, adding that the country’s real sector was being systematically starved of capital.
Seperately, Alliance also Alliance also raised concerns over the sustainability of the country’s fiscal position, warning that despite improvements in government revenue, persistent leakages, rising debt obligations and weak capital spending continued to undermine budgetary effectiveness.
