The Board of Economists at The Daily Trust has recommended that the federal government lessen its reliance on short-term domestic borrowing, which directly adds liquidity to the financial system. The board stated that when borrowing is necessary, it should be specifically connected to development initiatives that increase productivity and funded by suitable long-tenor instruments like infrastructure bonds, which match repayment with long-term economic benefits. This was said in a statement issued by Dr. Shehu Yahaya, the Chairman of the Board, at the conclusion of the fourth quarter meeting, which took place over the weekend and had as its theme “Restoring Fiscal Coherence in Nigeria.”Stronger fiscal-monetary coordination is necessary going forward to guarantee that policy actions are mutually reinforcing rather than offsetting, according to the communiqué.
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