1. Nigeria’s bonds acquired by the Central Bank of Nigeria has raised the central bank’s liabilities from N2.1tn in 2009 to N6.1tn in 2013, a new report released by Afrinvest has revealed.
2. The development had made over 40 per cent of the CBN’s asset portfolio ‘unmarketable.’
3. The report read in part raises crucial questions that require urgent attention.
4. The report noted that in the event of another crisis in the banking sector, the CBN might not have the capacity to bail out the banks without avoiding the option of printing money.
5. Afrinvest, however, noted that the option to print money might have significant consequences on price stability. As such, the CBN might be forced to raise the AMCON levy on banks from the current 0.5 per cent to include an additional 0.5 per cent of their off-balance sheet items in coming years.