Move fast to stop declining growth, Emefiele charges FG
Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has charged the Federal Government to act fast to stop the declining growth of the economy, saying the country must sustain the recent modest output performance.
He also charged chief executives of banks to recognise the critical role of the financial system in accelerating the development of the real sector of the economy.
Speaking at the ongoing 2022 Bankers’ Committee Retreat, themed, ‘Increasing the Productive Base of the Nigerian Economy and Non-Oil Export Revenues’, yesterday, Emefiele challenged the participants to be deliberate about discussion on innovative and sustainable ways to boost the productive base of the economy.
He said: “We can no longer delay in resolving the structural issues inhibiting non-oil export receipts. We must strengthen the immunity and engender the resilience of our economy against exogenous shocks.”
The CBN governor said the expected recovery of the global economy from the COVID-19 shock has been replaced by new shocks from the Russian-Ukraine war and the unprecedented stalling of the Chinese economy since last year.
He noted that as a result, Nigeria’s GDP growth fell gradually from 5.03 per cent in Q2 of 2021 to 3.98 per cent in Q4 and down to 2.25 per cent in the last last quarter.
“Against the backdrop of the widespread slowdown in many economies and the risk of an imminent recession, the IMF repeatedly downgraded short-term global growth prospects, as nearly one-third of the world’s economies are projected to contract next year.
“From a high of six per cent growth rate recorded in 2021, global growth is projected at 3.2 per cent in 2022 and reduced to 2.7 per cent for 2023 even as soaring global inflation remain high for both years,” he said.
The CBN boss added that global reaction to the distortions has been “chaotic, uncoordinated and profoundly nationalistic.”
Emefiele noted that the collaboration of the Bankers’ Committee have delivered tangible contributions to the nation’s economic prosperity over the years.
He tasked the Bankers Committee to contribute to national development and economic growth and recognise the critical role of the financial system in accelerating the development of the productive base of the economy.
He, however, commended the committee for its collaborative programmes, which have delivered tangible contributions to the nation’s economic prosperity.
The Lagos State Governor, Babajide Sanwo-Olu, described the RT200 Foreign Exchange Programme as a major policy thrust that would unlock the potential of the non-oil sector. He said new infrastructure are necessary to attract more investment into the sector and increase productivity.