Nigeria: CBN's elevated funding to the government increases risk to the naira

  • Lending from the Central Bank of Nigeria to the federal government hit NGN20tn (US$45bn) in H1 22 – 11% of GDP

  • Persistent backdoor funding to the government negates the central bank's efforts to tame inflation and salvage the naira

  • Investors are likely to continue to book negative real returns on investments as yields remain suppressed

August 12th, 2022
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