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Nigeria’s situation now requires hard choices, says Central Bank


Godwin Emefiele

Godwin Emefiele

Chides TSA critics, as stability, inclusive

With the economy now in recession, Nigerians have been urged to come to realities of the times, especially regarding the issues that brought the nation to the unsavory development.
For the Central Bank of Nigeria (CBN), the situation is not a normal one and presently sweeping across the globe, hence hard choices are required to turn it around.
Meanwhile, in what seemed like a renewed drive, CBN has vowed to deploy appropriate monetary policy tools in the fight for survival to engender inclusive growth and pursuit of self-sufficiency by bolstering productive capacity in the country.

CBN Governor, Godwin Emefiele, while delivering a lecture at the National Institute of Policy and Strategic Studies in Kuru, Plateau State, at the weekend, explained that unfolding developments in the last two years, which put the country low, are not normal.
Meanwhile, the bank chief has dismissed insinuations by banking industry operators that the introduction of the Treasury Single Account (TSA) stifled their operations.
He rather affirmed that TSA was one of the best and boldest decision any administration in the country had so far taken.According to him, the impression that the TSA was stifling banks was created to draw unnecessary sympathy and “it is unfortunate that this is the way the banks have interpreted it.
Perhaps refuting the claims that TSA implementation affected banks’ ability to give credit, he queried: “When I was in the bank, how much loan did I give you as a Small and Medium-sized enterprise?”

He added: “CBN has always tried to act in good faith, with the best available information and in cognisance of current economic conditions, to pursue the goals of price and financial system stability, as well as catalyse job creation and inclusive growth in the country.
“When you have policies that people are praising, that means such policies are not really good, because the people praising the policies know that they can circumvent them. But if people criticise your policies, especially in Nigeria, such policies are good; the people criticise them because they know that they cannot circumvent them.
“We should remain resolutely committed to the course and be motivated by the achievability of our desire to strengthen the economic fundamentals.”
According to him, when stop importing toothpicks, tame our craving for imported rice cultivated with chemical, stop eating chicken imported and preserved with formaldehyde, then the pressure on the economy will give way for growth.
He lamented that with the size and structure of the country’s import bills, it is apparent that the country cannot continue to depend on others for things that can easily be produced locally, which merely means “exporting jobs and importing poverty”.The Governor disclosed that the country was making over $3bn at the height of the oil boom, pointing out that it can now hardly make $500 million now.

In this article:
CBNGodwin Emefiele
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  • Objectivity View

    Hard choice # 1: Sack the imbecilic CBN governor appointed by Jonathan, an imbecilic dipsomaniac.

    • ny1010

      The very one to sack is the Dullard of Daura in illiterate kingdom of Nigeria.

    • james_grim_teacher

      This Governor is trying is best. I blame him for some of the Jonathan mistakes but he has now implemented TSA which is one of the painful but sane ways to restore maturity to the system. There areally very few things you can do on the monetary side to improve things beyond what they are now. We have to wait; discipline and work ourselves out of ghost hole

      • abodes_124

        Lowering interest rates in a recession does help a little don’t you think. It is in his hands.

        • IIS

          Let him be spouting nonsense. How can one even say that. He might as well just say there is nothing we can do and let the recession continue til lit corrects itself. Its amazing what you read on the forums these days.

        • benedict chindi

          He can’t reduce interest rate ’cause inflation has increased from 9.3% in July 2015 to 17.1% in July 2016. Besides his major responsibility is ‘Price’ and ‘financial system’ stability. Those who have a responsibility to tackle d recession are d President and his economic team, since they run fiscal policy. The CBN governor is an easy target ’cause he was not appointed by d present government (who I must add must feel so lucky to have an available punching bag), but truth is the only solution is political and economic restructuring.

          We cannot afford d number of politicians our taxes support (at federal, state and local government level), we can’t afford a 2-tier national assembly, we can’t afford d number of ministries we currently have, we can’t afford d number of civil servants we currently have (at federal, state and local government level), many of our states are not viable political and economic units and we should consider merging a number of them. Successive Nigerian governments have also failed in managing public enterprises and we need to privatize nearly all of them (except maybe a few health and educational institutions).

          More importantly our population growth rate at over 3% per-anum is unsustainable for a poor country like ours especially given the fact that the poorest states in d country also have d highest population growth rates. in 1950 there were 40 million Nigerians, and by 2050 there will be 300 million Nigerians. Beyond d recession, this is actually d ticking time bomb nobody is talking about or planning for (except maybe d Lagos state govt).

          Any other way of looking at our problems or any other solutions that enable us gloss over them will just see us going round in circles without solving anything….

          • abodes_124

            Current ‘management’ of the economy can only be described as economic schizophrenia. on one side government is trying to is running a deficit budget with borrowed money so as to put more money in circulation to increase economic acivity [supply side] whilst the central bank is tightening money supply with punitive interest rates shrinking money supply and reducing economic activity [monetarist] and worsening the recession. You can see that we do not have an ‘economic team’ as per the previous government or as in other countries on this planet.

      • IIS

        Again a good reply is “I have been seeing stupid posts but your own is Grade One.”. When you say there are few things you can do thats you actually being deliberately ignorant again or worse still plain stupid and pandering to either ignorance or to the govt narrative.

    • Priestley Okorro

      Objectivity is at infinity from you. If you are so dumb that you can not see that the man that replaced Jonathan is the one responsible for your predicament then please hug 132KV line so that you can be exported from the world.

  • aiyekotto

    According to Ibe Kachikwu, refined crude imports claim 40% of forex reserve. The question is, if FG cannot refine crude and there are some ‘illegal refiners’ who refine crude, why can the FG not support such ventures? Will it not provide employment? Will it not free forex for other priorities? Will it not provide peace in the restive Niger Delta? We are just ‘too stupid’ Like Chinua Achebe said in ‘Trouble with Nigeria (1983).

    • james_grim_teacher

      I have been seeing stupid posts but your own is Grade One. You have confirmed it again, God has to create a special planet for Nigerians. Very soon their idiocy, “locality”, bushmanity and willingness to cut corners will be unacceptable in most countries.
      Already Nigerians are trying to smuggle cocaïne to Saudi Arabia …just because every other country is stupid and Nigerian juju will cover everything.

      Now to your refineries. Even modular refineries are not accepted in most countries not to talk of the polluting, cancer causing crude oil distillation frying pots that you say Nigeria should allow.

      Believe me, as original and clever you think your idea is that is as ignorant and stupid it actually is.

      • aiyekotto

        Really? You think refineries that operate within best practices of the oil industry and guarantees optimum community participation is a bad idea? Did you know fracking now accounts for about 2/3 of oil US production?
        Keep thinking within the box and watch your country slide from recession to a failed state. I wonder where you will get money to buy weapons to fight the likes of Boko haram or pay salaries to civil servants when you run out of forex! BDW, my idea is actually pretty outrageous and ‘cutting corners’ compared to amnesty payments that are not sustainable!

      • MC

        I think you have accurately submitted my reply to his post, except for maybe the first paragraph which I would say it’s solely your thoughts.
        By the way, his idea is though clever to some minds but not original. I have once read an article here encouraging the govt to adopt this modular refineries model in our downstream petroleum sector and I wondered how the person must have thought it was okay to encourage illegality, not to mention the damaging consequences on the environment.
        This is not thinking outside the box with the analytical left hemisphere of the brain. it’s thinking with the imaginative right part of your brain, like it’s just add 1 to 1 and you get 2.

        • IIS

          Do you know the difference between a bush refinery and a modular refinery thats properly planned for? Do you even know what a modular refinery is? So you know when you add 1+1 you do get 2. You really had no point there yah know.

          • If there is anything I just learnt from the whole comments here is Nigeria’s ability to do well in another sector. No nation can surpass Nigeria in the area of Insults, Abusive language and intolerance. as a matter of fact, Federal Government should establish THE INSTITUTE OF ABUSIVE TECHNOLOGY and FEDERAL FORUM OF INSULTING GURUS. Our foreign reserve would be doubled almost in a breeze.

      • IIS

        My reply to your post will be “I have been seeing stupid posts but your own is Grade One.”. You saying modular refineries in its proper format (not bush refineries) wont work is you being ignorant and actually stupid. Go tell this to people in your bush league. Industry professionals will beg to differ. Cancer causing crude oil distillation?? Really!!

    • infinity

      They destroyed the so called illegal refineries becasuse the people importing the oil are the same EVIL CABAL in buharis goverment

  • Dr. Jegede, Ajibade Ebenezer

    Honourable Gov. it is not always true that those policies complained about by Nigerian are often good policies. In short, the more inhuman a policy, the higher the complaints about it. We should also know that several policies are not well thought out by policy makers. Post mortem of such policies have shown that they contain flaws which out to have been deliberated upon before operating them. You don’t have to see Nigerians or organizations as complainants but rational in their reactions.

    • abodes_124

      Its like the banning of our top banks from the forex market. Every one screamed at such a mad decision at such a critical time and despite his allergy to criticism he reversed it. Please wailers wail as loudly as you can. Occasionally even the deaf will hear if you wail loud enough.

  • abodes_124

    OMG ‘When you have policies that people are praising, that means such policies are not really good, because the people praising the policies know that they can circumvent them. But if people criticise your policies, especially in Nigeria, such policies are good; the people criticise them because they know that they cannot circumvent them’ . If this is the thought process of the person we have entrusted the running of the most critical national institution then there is truly no hope.
    Stupid is as stupid does.

  • Stanley

    At the hotel that Emefiele spent the night before the lecture, He certainly ate chemically cultivated rice imported into the country with chicken preserved with formaldehyde. Out side that he would have nothing to eat. He is in a position to catalyze farms for rice and chicken. Just talk to Nigeria investors about how good farming is, get experts from Asia, Isreal, Brazil, etc, to partner with them and give them CBN guarantee. The rest is practical and visible diversification into thousands of mechanized farms, economic recovery and his name will be written in gold. That is the only thing we want from him, not lectures. We the people of Nigeria are ready and have the interest and strength to work at the mechanize farms better than the Asians where the foods are coming from. Emefiele, please this is not a hard choice for a government that is meaningfully at work.

  • Good, Dear Mr Emefiele, talk of patronizing imported rice et al, it all starts from the top. Government must patronize locally produced and assembled goods and even support and encourage Nigerians with the local skills to develop our own local ways of doing things, it may not be perfect at the start but with encouraging persistence it will be okay. I have read and learnt at several fora that crude oil is refined in the creeks and the refined products sold are sometimes caught sold in the open market, though this is illegal. What stops Nigerian Govt from encouraging the locals build these locally constructed crude refining factories and integrate their operations into the formal sector? over time their skills will sharpen,this way the country won’t depend on the foreign supplies again and save forex. There are lots of things Nigerian youths can do and get right over time and even get international certification and applaud all they need is support, encouragement and political will from the Governments. or how do you explain how Nigerians are holding sensitive technical and managerial positions in international companies in oversea countries but back home they are struggling to get any thing done.

  • Izeobor

    Emefiele;s logic or illogicality is symptomatic of his “master”. He who pays the piper dictates the tune. Emefiele is “not stupid” but trying to retain his job and can dance around the emperor, even in the nude, for economic survival. Emefiele should realise he is insulting the collective sensibilities of better enlightened and educated Nigerians than himself. I have said it before: An almajiri government will enunciate an almajiri economics. Nigerians should be patient for the term of this government to run out. Go to the polls and express your complainst since the government is impervious to reason.