Nigeria c bank weans banks off govt loan addiction

NIGERIA - The Nigerian central bank's drive to discourage commercial bank lending to regional and local governments should control money supply and inflation but at the expense of bank profits, bankers and analysts said.

The central bank hopes the painful pill will ultimately jump-start the economy by forcing banks to increase lending to small and medium scale businesses.

Last week the central bank ordered that banks must immediately write off 50 percent of any loan they make to governments to

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