The Central Bank of Nigeria has barred individuals and local non-financial firms from buying high-yielding central bank bonds as it tries to boost the economy by steering lending more widely.
The two types of investors are excluded from participating in auctions for open-market operations, which are short-term central bank securities.
Central Bank spokesman, Isaac Okorafor says it will discourage banks from giving loans to speculators who want to buy government securities instead of investing in the real economy.
Mr. Okoroafor adds that the measures are in line with a wider policy to penalize banks that don’t boost lending.
Advertisement
