The International Monetary Fund (IMF) has indicated its intention to conduct a due diligence exercise on the Central Bank of Nigeria as part of a fresh ‘safeguards assessment’, following its latest $3.4bn support to the government in the country’s fight against the COVID-19 pandemic.

The Breton Woods institution in a FACTSHEET hoisted on its website, stated that safeguards assessment of central banks would help in protecting IMF’s resources, and to “ensure that loans to member countries are repaid as they fall due so those resources become available to other members in need.
“When the IMF provides a loan to a country, a due diligence exercise is carried out to obtain assurance that the country’s central bank receiving IMF resources is able to manage the funds and provide reliable information,” the fund further explained in the FACTSHEET”, the Fund stated.

Described as a diagnostic review of a central bank’s governance and control framework, the assessment involves five key areas, namely external and internal audit mechanisms, legal structure and autonomy, financial reporting and system of internal controls.