Clean Up Your Balance Sheet, Stop Quantitative Easing, Says Ex-CBN Director

A former director of the Central Bank of Nigeria (CBN) has asked the regulatory bank to explain and correct all assets created without corresponding liabilities and without equity support from its key shareholder; the federal government.
In a chat with GFD, the director who craved anonymity said the central bank would have collapsed had it been a commercial bank with the manner it was creating assets without a commensurate equity backing.
The ex-director said “We must take a second look at the Monetary Policy and stop quantitative easing.”
In reference to the speculation on missing money in the vaults of the regulatory bank, the ex-director noted that there was no fraud in the bank, but rather the issue in public space are part of challenges arising from the bank's balance sheet.
The bank should put an end to its intervention in the economy, which was said to have favoured a particular group in the country.
The ex-director counsel the CBN governor, Godwin Emefiele to take advice, not from those who are looking for work and will tell him what he wants to hear, but from those who have knowledge of central banking and knows how the accounts work together in harmony for economic development and stability of the financial system.
The CBN has been disbursing a huge amount of money directly to support some critical sectors of the economy in a bid to stimulate growth.
Its Anchor Borrower scheme has largely been responsible for the increase in rice production in the country, but a number of farmers have claimed the loan was not evenly disturbed across the country.
The bank is currently providing credit facility support for cotton grower in the north, to help revive the textile industry in the country and create job to the teaming population.