Economy

Emefiele to Nigerians: Tough economic times still ahead

The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, on Wednesday told Nigerians that the road to the country’s full economic recovery is still tough and rough.

The CBN governor also said that contrary to insinuations, the country does operate multiple exchange rates.

What is obtainable in the country, he said, is multiple windows designed to stabilise the exchange market.

Emefiele spoke when he appeared before the Senate Committee on Banking, Insurance and other Financial Institutions for screening for reappointment as CBN Governor for another five-year term.

He decried the high level of disregard and disrespect of policies and laws of the country.

For him, the Federal Government designs policies and puts laws in place aimed at growing the economy, but implementation had always posed a challenge.

The CBN boss noted that there was no doubt that observing policies and laws put in place by the government was a sure way of growing the country’s economy.

Emefiele took time to explain what the apex bank did to lift the country out of recession.

He vowed that those who work to circumvent and flout the laws of the country would no longer be spared.

He expressed worry over the country’s rapid population growth rate warning that steps must be taken to put in place policies that would take care of the projected 425 million people in 2015.

Emefiele said, “We just came back from the IMF/World Bank programme in April. And in the World Bank’s/IMF’s World Economic Outlook, Nigeria is positioned as a country whose population will grow and rise to over 425 million people by the year 2050.

“That will present Nigeria as a country with the third largest population in the world after China and India and indeed surpassing the United States of America in population.

“I worry and I do think that we all should worry that a lot of work needs to be done to make sure that we are able to put in place policies that will make life good for this 425 million people when we are the third largest population in the world.

“So, we from the Central Bank of Nigeria from the monetary policy side, have come to the realisation that using the instrumentality of the Anchor Borrowers Programme where access to credit is being provided to our masses all over the country, that it will be a way to generate employment and boost economic activity amongst our rural population.

“The results are there to see that as a result of our Anchor Borrowers Programme where we have disbursed over N190 billion to over 1.1 million smallholder farmers, cultivating over 1.3 million hectares of land, that we need to do more of this.

“As we do this, we make finance available at a low interest rate, we make access to credit easy for our people. And in doing this, we will be able to create jobs for them and improve the livelihood of our people.

“That is a sole thing that we make. And I am very optimistic that this can be achieved.”

He continued, “I went to one Asian country, I entered the country happy but I came out of the country sadly. Sad because I could see the level of development that this country has achieved over the last 50 years.

“And I cast my mind back and look at my country Nigeria that what have we achieved? This is what gives me the push that at my age of 57, I saw this country when it was good.

“I am looking at the country today and I am saying I don’t want to say it is bad but I want to say that we have a lot of work to do; because the country has no doubt receded somewhat.

“So from our side in the monetary policy, we will do everything possible to ensure that with the mandate that is bestowed on us, we will pull this country forward.

“Aside from the Anchor Borrowers programme, we are also looking at special programmes targeted at wholesale growth of the agricultural sector in Nigeria. Aside from rice and other small good crop markets, we have started looking at palm oil. “Because we believe that this country has a lot of potentials in palm oil. If you think about what this country was in the ’50s and ’60s, Nigeria is a country at that time that controlled 40 percent market share in the palm oil industry, exporting its palm oil to different parts of the world. But because we found crude oil, we receded and abandoned it.

“For some of you who are very good in doing calculations, go and check today: the price of a barrel of palm oil is more than the price of a barrel of crude oil. So, what happened to our country?

“There are countries when they have the opportunities in agriculture and also have opportunities in the crude sector, they didn’t let their guards down.

“But unfortunately we did and that is what we are paying for today. So that when there are some external shocks in the crude oil market, we sneeze, but we only smile when the market is good.

“We will grow that market back again. And after that, we will go into cocoa in the South West area to be sure that what we are doing permeates all the nooks and crannies of this country. Because we think we owe Nigerians this.”

Emefiele who thanked the lawmakers for praying for the CBN to succeed said, “I thank you for praying for me because we need it. I say this because the road ahead is still rough and very tough.

“But I want to appeal to all Nigerians that a time comes in the history of a country where you have to learn to respect the policies and laws of a country.

“Part of the problem that we have seen in Nigeria is lack of respect for the policies of this country. Nigeria is very good at putting in place policies that are sound and workable. But implementation has always been almost zero.

-TheNation

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