Nigeria set to face more economic crisis

The IMF has called on the CBN to discontinue direct financing of government for the country to witness strong economic recovery from recession.
Financial experts have warned of the possible consequences of the central bank of Nigeria's [CBN] direct financing of government on inflation and other economic indices.
Mr Amine Mati the senior representative and mission chief for Nigeria at IMF said the government should cut down the need for domestic bond issuances, a situation he said is crowding out credit to the private sector.
One of the experts an external member of CBN's monetary policy committee Adedoyin
 Salami, criticized CBN's massive injections of cash to the government,accusing the bank of serving as a "pigg bank" for the government against its own rules.
Mr Salami warned that CBN is pushing Nigeria to a serious economic crisis.
To cover up for this illegal financing the experts said the CBN has been crambling to elvolve policies that would counter the destructive effects of its actions,some of the measures gathered includes the pumping of Forex into the exchange market to carter for high demand due to the attendant rise in naira liquidity.
Another means through which CBN pumps money to the goivernment isthrough the banks #454 billion spending on purchase of government treasury bills which Mr Salami said has risen by 30percent

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