June 24, 2011 7:47 PM SAST

Nigeria cbank sees further tightening: Report

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Nigeria cbank sees further tightening: Report

Nigeria's new government will not be cutting public spending anytime soon, Central Bank Governor Lamido Sanusi said on Friday.

Nigeria"s Central Bank Governor Sanusi Lamido Sanusi speaks during an interview with Reuters in his office in Lagos March 7, 2011.

"My sense is that it will take a little while to reduce government spending," Sanusi told CNBC Africa television.

"In the next few months we will probably see spending remain at the levels we have seen in the recent past which means the monetary pressures will continue for the next three to four months," he said.

Sanusi said high global oil prices and strong money supply meant there were still inflationary risks in sub-Saharan Africa's second-biggest economy and that monetary tightening was likely to continue towards the end of the year.

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Akintunde Akinleye / REUTERS
Nigeria"s Central Bank Governor Sanusi Lamido Sanusi speaks during an interview with Reuters in his office in Lagos
This article is copyrighted by Africa.IBTimes.com, the business news leader
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