The monetary policy committee of the Central Bank of Nigeria (CBN) has expressed concern over the increase in the disbursement of oil revenue from the federation account by the three tiers of government.
The committee at its meeting on Wednesday in Abuja, said the monetisation of the oil revenue in the federation account is becoming worrisome.
The apex bank’s governor, Godwin Emefiele, reading the communique, asked the government to instead initiate a strong stabilization programme, freeze their aggregate expenditure, and reduce the distribution of revenue from the federation account.
According to the committee, the suggested measure will stabilize Nigeria’s fragile economy against future shocks from the global economy.
The committee also asked governments to reduce their borrowing locally, and pay the N2.7 trillion debt owed local contractors.
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