NewsExpress banner Firstbank Verve banner Fidelity bank card banner Umm Sulaim's Thoughts Camano banner

Emefiele lists priorities for 2020

By News Express on 30/11/2019

Gmail icon

Views: 349

•CBN Governor Emefiele
•CBN Governor Emefiele

•Unveils Bankers’ Charitable Endowment Fund

•Monetary Policy stance to remain tight

•Pushes for improved domestic production

•Reiterates call to diversify economy

 

The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has listed the Bank’s priorities for 2020 to include support for greater economic growth, price stability and low inflation, even as he hinted on the continued tight monetary policy stance of the Bank and the establishment of a Bankers’ Charitable Endowment Fund.

Mr. Emefiele unveiled the bank’s plans for the next year while delivering the keynote address titled: “Strong Sustainable growth for the Nigerian Economy” at the 54th Annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos yesterday, Friday, November 29, 2019.

The Governor announced the establishment of a Bankers’ Charitable Endowment Fund that will fund a major charitable initiative every year starting in 2020. According to him, the Bankers’ Charitable Endowment will directly fund strategic social programmes in states and local communities across Nigeria. He expressed the hope that the Fund would spur a trend across other industries and sectors to collaborate and work together to better the lives of all Nigerians.

Speaking on the developments in the country’s economic and financial sector, over the past year, and how they affect the macro-economic outlook for 2020, he said in spite of the positive growth the economy experienced, growth had remained slow due to “some structural constraints” in the economy.

According to him, the pace of growth, given Nigeria’s growing population, exposed the economy to shocks, such as changes in the oil price, and sentiments in the global financial markets.

Disclosing plans by the CBN to support the economic recovery and enable stronger growth for the country’s Gross Domestic Product (GDP), Mr. Emefiele said that the Bank would continue its current tight stance, particularly in view of rising inflation expectations.

“Though we will act to appropriately adjust the policy rate in line with unfolding conditions and outlooks, the CBN will continue to ensure that the policy interest rate is delicately set to balance the objectives of price stability with output stabiliSation,” he explained.

Doing a recap of the highlights for 2019, Mr. Emefiele recalled that the country’s GDP had remained positive, adding that the positive growth in GDP had been driven by improvements in Agriculture, Oil and Gas, Manufacturing and ICT as well as the intervention programmes of the CBN, along with sustained supply of foreign exchange and stability of the naira.

He also attributed the decline in inflation to the Bank’s maintenance of a tighter monetary policy rate at 13.5 percent, and its efforts at improving local production of key staple items.

Speaking further, he said the Nigerian financial system was now stronger due to the fact that capital buffers and liquidity in the banking system have continued to improve.

According to him, industry-wide Capital Adequacy Ratio (CAR) had increased from 10.2 percent in December 2017 to 15.5 percent in September 2019. He added that the percentage of non-performing loans in the banking sector had reduced from a high of 14.7 percent in January 2017 to under 7 percent as at October 2019.

He equally disclosed that credit conditions in the banking system had improved supported by the CBN’s new policy measures announced in June 2019, which require banks to maintain a minimum 65 percent loan to deposit ratio. Furthermore, he said banks in the country are now able to recover delinquent loans from customers’ accounts in other banks, adding that the measures now placed Nigerian banks in a much better position towards supporting a stronger economic recovery. This, he added, had increased gross credit by N1.16 trillion between May and October 2019.

On the country’s External Reserves, the Governor said the Bank’s effort at supporting domestic production in the agriculture and manufacturing sectors among other policies, had continued to encourage foreign exchange inflows into the Nigerian market. According to him, over $60 billion worth of transaction had taken place since the inception of the Investors’ and Exporters’ window in April 2017, adding that Nigeria’s foreign exchange reserves were above $40bn as at October 2019, compared to $23bn in the same period in 2016.

The Governor also highlighted the Bank’s effort in development financing, which he said the CBN had sustained in order to help support growth in critical sectors of the economy such as agriculture and the manufacturing sectors, through programmes such as the Anchor Borrowers’ Programme, the Commercial Agriculture Credit Scheme and the Bankers Committee Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS).

Alluding to the economic face-off between some countries, as well as the likely challenges the economy could face due to moderate oil prices, he stressed the need for Nigeria to build up the necessary buffers that would protect the economy from pressures in the global market. He then restated the need to boost local production and diversify the country’s export base.

“We should encourage Nigerians to consume goods that can be produced in Nigeria, knowing full well that a time will come when we may not have the foreign exchange to aid such activities, if we continue to rely on earnings from the export of crude oil,” he emphasised. 

Recalling the country’s economic glorious past when the economy was heavily reliant on agriculture, with increased cultivation and exports of primary products such as cocoa, palm oil, cotton and groundnut, Emefiele posited that it possible to envision a productive Nigerian economy that is not reliant on exports of crude oil.

The CBN Governor urged all stakeholders to believe in Nigeria’s greatness, stressing that the country was blessed with abundant human and natural resources, which if truly harnessed would propel Nigeria into one of the world’s top 20 economies.

“We must redouble our efforts to continue to support actions by the monetary and fiscal authorities to diversify the base of the Nigerian economy through encouragement of made in Nigeria products.

“We must also consume what we produce and produce what we consume. We must discourage the propensity to import what can be produced in Nigeria. This is because if we do not reduce import, the same imports will kill us knowing full well that such activities do not aid our efforts to create jobs and support the growth of our local industries.

“If we choose to follow the trend of supporting imports of goods that can be produced in Nigeria, we will lose jobs, our industries will die and insecurity and other social vices in our land will continue to increase. We must choose this alternative path of improving domestic production, which will support growth of our local economy,” he charged.

As part of the Bank’s priorities for 2020, he said the CBN was determined to maintain its stable exchange policy stance in the near to medium term given the relatively high level of reserves. He said the Bank would also sustain these efforts in 2020 as part of our plan to reduce our financial exclusion rate to under 20 percent over the next year.

The Governor said the Bank will also improve access to credit for farmers and SMES by deepening its intervention efforts through the Anchor Borrowers’ Programme, Commercial Agriculture Credit Scheme and the Real Sector Support Funds, amongst others. Similarly, he said the Bank, in pushing to improve access to finance and credit, would protect them from unfair banking and lending practices by maintaining oversight on the banks and other financial institutions.

In addition to making sure that financial institutions support the growth of the real sector, Mr. Emefiele said the CBN, working with the Nigerian Export Import Bank (NEXIM), improve access to the N500bn facility designed to support the growth of Nigeria’s non-oil exports.

While disclosing that the Bank, working with the fiscal authorities, will support the recovery of the economy, the CBN Governor reiterated that Nigeria was open to business and urged investors to take advantage of the investment opportunities in Nigeria. He assured that investments in Nigeria would be duly protected by the authorities.

Source News Express

Posted 30/11/2019 1:11:12 PM

 

 

CLASSIFIED ADS

 

You may also like...
Jonathan has given political leaders an assignment, says...

Stop going after ‘yahoo boys’, IG warns SARS...

Toast to UCH Ibadan at 60, By Folu...

Flood kills at least 45 in Katsina

2019: INEC uncovers 1,224 dead persons in Adamawa...

Fayemi meets Ekiti workers, assures of salary arrears,...

Delayed Flight: Frustrated lawmakers depart airport in the...

FEC approves draft proposal of 2018 Budget

166 human skulls found in Mexican mass graves...

Group warns against unconditional amnesty for ex-Boko Haram...

Aggrieved APGA aspirants shun reconciliation meeting, insist on...

6 abducted Chibok school girls sighted in Sambisa...

 

Latest News BREAKING: Blow to Oshiomhole as IGP orders suspension of Edo APC Mega Rally 4 Nigerians, 11 others charged in US for $18m fraud scheme Tension in Edo over APC mega rally •Angry youths shake Benin City, set bonfires NUJ declares support for Punch Editorial on Buhari Yes, Wike has conquered River State, but there is hope — Tonye Princewill 14.3m Nigerians addicted to drugs, says health minister 45 doctors dump Anambra Teaching Hospital Nigerian bags 3rd highest national British honour The military that conquered Nigeria in 1966 still in effective control – Opadokun Army says video on soldiers killing work of IPOB Six people killed in Rivers community – Police Two INEC staff bag 21 years each for collecting bribe

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (571,731 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (456,556 views) Shameless Genevieve Nnaji exposes breasts in public (406,507 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (341,494 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (307,821 views) 10 cars more expensive than Jets (292,187 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (261,313 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (260,402 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (241,840 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (228,354 views) Lagos plane crash: Journalist releases victims’ names (204,026 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (200,389 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (112) Business & Economy (4,620) Business Verdict (89) Columnists (1,157) Complaints & Requests (98) Enterprise & Opportunities (221) Entertainment (718) Features (855) Global Business Monitor (498) ICT Monitor (73) International (4,321) Interview (219) Live Commentary (30) Love Matters (178) Maggie's Blog (514) News (55,167) Opinion (1,440) Pidgin (18) Politics (11,882) Religion (1,133) Sports (2,255) Stock Watch (41) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera