The Central Bank of Nigeria said it has put machinery in place to monitor the rate at which banks provide loans to politicians to finance their campaign spending ahead of the 2019 general elections.
The CBN Governor, Mr Godwin Emefiele, disclosed this on Thursday while briefing journalists shortly after a two-day Monetary Policy Committee meeting which were held at the headquarters of the apex bank in Abuja.
He said that the CBN would be monitoring their activities with a view to intervening when things are about to go wrong.
He expressed optimism that due to past experiences, commercial banks would not want to take excessive risks by increasing their lending exposure to politicians.
Godwin Emefiele said that while banks have their own risk assessment criteria, the CBN would be closely monitoring their activities so as to protect the banking sector.
He added that the CBN had met with bank executives and during the meeting; they were warned on the dangers of involving in money laundering activities.
“We have had meetings with the banks and we have asked them to be very careful on money laundering issues, and I believe they will be careful themselves because they know that if they are caught, it means that they will be heavily penalized,”Emefile said.