The Governor of the Central Bank of Nigeria, CBN, Mr Yemi Cardoso, has said the economic policy proposals of President Bola Tinubu’s administration will achieve a Gross Domestic Product, GDP of 1 trillion Naira in eight years.
He declared in Marrakesh, Western Morocco, Thursday on the sideline of the ongoing 2023 World Bank/IMF Annual Meetings.
The CBN Governor said efforts had been put in place to reposition the apex bank for overall economic growth, stressing that the government would identify fiscal reforms and growth targets to achieve the feat within eight years.
You May Also Like
Cardoso said that in a study of emerging markets, macro-economic indices pointed to Nigeria’s economic trajectory, given the faithful implementation of the proposed economic reforms.
He disclosed that the study followed a review of economies like Brazil, Russia, India, China and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT), countries with similar populations and developmental characteristics as Nigeria.
In his speech, he said, “In economies bigger than 1.
0 trillion dollars, these indicators include moderate inflation, sizable foreign reserves, and the capacity to quickly rebound from a cyclical economic downturn.
“Given this, a refocused CBN will better serve Nigeria through monetary policy interventions and advisory roles that sustain implementation of the administration’s fiscal proposals,” Cardoso said.
He further disclosed that the lines between monetary policy and fiscal intervention should be delineated to pave for economic growth.
He explained that much had been made of past CBN forays into development financing, such that the lines between monetary policy and fiscal intervention have become blurred.
Refocusing the CBN on its core mandate, he said it is necessary to pull back from direct development finance interventions into more limited advisory roles supporting economic growth.
“The bank should act as a catalyst in the propagation of specialised institutions and financial products that support emerging sectors of the economy. “he disclosed.
He further assured that the management will ensure new regulatory frameworks to unlock dominant land capital and property holding.
He listed other roles of the apex bank, including accelerating access to consumer credit and expanding financial inclusion for the masses.
He stated that the bank should de-risk instrumentation to increase private sector investment in housing, textiles and clothing, food supply chain, healthcare, and educational supplies.
“The Bank should exercise its convening power to bring key multilateral and international stakeholders together for participation in government and private sector initiatives.” Said the CBN boss.
He admitted that the CBN did not have a magic wand that could be waved at Nigeria’s current economic challenges, as the problems facing the bank were large and complex.
He listed the challenges, including failure in corporate governance, unorthodox monetary policies and foreign currency management, unorthodox use of Ways and Means spending, and backlog of FX demand.
“The bank has to establish how much of the FX backlog is real and how much is given to speculation or hoarding. “he stated
He said the bank has to identify creative financing options for clearing the short to medium-term backlog.
“These problems need in-depth review by the new CBN leadership team to determine what mechanisms are currently working, what can be tweaked or dispensed with, and what new tools need to be introduced. “He disclosed.
More Stories
SERAP Sues CBN over Failure to Account for $6.23m in ‘Missing’ Election Funds, ₦1.63trn in Other Public Funds
SERAP Drops Bombshell on Tinubu – Demands Answers as N94.4 Billion in Oil Funds Vanishes Into Thin Air
Edo AG Defends Death Sentence for Four Kidnappers, Cultists
SERAP Gives CBN 7 Days to Account for Allegedly Diverted $6.23m Election Funds, N1.63trn Other Public Funds
SERAP to UN: Demand Answers Over 37 Deaths in NSCDC Custody, Minna Shootings
