The Central Bank of Nigeria (CBN) has said that despite the faltering earnings’ capacity of the economy at the moment, its fundamentals based on assessed opportunities would still bring it back to track soonest.

Citing a similar event in 2005, which lasted for a maximum period of eight months, against projections that the current situation would linger, it was optimistic that country is capable of adjusting itself to the end of the challenging times.

CBN Governor, Godwin Emefiele, who gave the assurance on the sidelines of the just concluded Monetary Policy Committee, however said it is imperative for all to brace up for a longer period of low government revenues and the accompanying hard and uncomfortable choices, until the economy transits to more sustainable sources of revenue that is consistent with the economic realities and strategic objectives of the country.

According to him, given sound and properly coordinated monetary, fiscal, and external sector policies, there is wide room for optimism about the medium to long-term macroeconomic prospects for the Nigeria.

Besides, given the clarity in the policy direction of the administration, the various interventions in the real sector, gradual improvement in the power sector, and the reinvigorated fight against corruption, the country would surely come out better.

The banker noted that the effect of the softer monetary policy stance adopted at the November meeting, would soon start to crystallise through expansion of credit to critical sectors of the economy.

Additionally, he stressed that the 2016 budget, which is oriented towards socio-economic and infrastructural development, is also expected to provide the necessary impetus for growth.

Ahead of the just concluded MPC meeting, speculations were rife that the naira would be devalued, with some sections of the financial market operators saying that the interest rate may be tweaked further, especially as the crude oil prices hit new low.

But the apex bank chief reiterated that CBN is fine tuning the framework for foreign exchange management with a view to ensuring a more effective and liquid foreign exchange market.

The framework, he noted, would take into account Nigeria’s strategic development priorities, with the policies being designed to regularly ensure consistency with monetary and fiscal policies.

Besides, he admitted that there is necessity for improving the supply of foreign exchange to the market, especially from autonomous sources, reiterating commitment to maintaining stability in the naira exchange rate.

While the liquidity in the system has remained high in recent times partly from the growth-stimulating policy measures, he frowned at the banks for preferring to invest in government securities, rather than extend credit to the needed sectors of the economy.

Emefiele therefore, urged the deposit money banks to improve lending to the real sector, explore ways of incentivising lending to employment and growth-generating sectors, particularly SMEs, even if it is only for the sake of patriotism.