Economic Recession: CBN vows to deploy appropriate monetary tools
Following economic recession in the country, the Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has vowed to deploy appropriate monetary policy tools that will ensure inclusive growth by bolstering productive capacity and ensuring economic self-sufficiency in Nigeria.
Emefiele gave the assurance while presenting a paper at the Senior Executive Course 38 at the National Institute of Policy and Strategic Studies in Kuru, near Jos, the Plateau State capital.
He stressed the need for all Nigerians to face the reality of the fact that present situation in country and across the globe was not normal adding that hard choices were required for a turn around.
According to Emefiele, “developments over the last two years show that these are not normal times by any stretch of imagination” and noted that “the CBN has always tried to act in good faith, with the best available information and in cognizance of current economic conditions, to pursue the goals of price and financial system stability, as well as cataliyze job creation and inclusive growth in the country.”
Dwelling to the topic, ‘Managing monetary policy in turbulent times, Emefiele opined, “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.
He therefore urged Nigerians saying “we should remain resolutely committed to the course and be motivated by the achievability of our desire to strengthen the economic fundamentals.”
He also advised that “when we stop importing toothpicks, stop eating imported rice cultivated with chemical, stop eating chicken imported and preserved with formaldehyde, then our economy will begin to grow.”
Mr Emefiele recalled that “20 years ago, we had textile, we had the groundnut pyramids, Cocoa with which the legendry Cocoa House was built and palm oil. We also used revenue from agriculture to build our economy. But after we found oil, we abandoned all that for easy money. Today, we are suffering the consequences. ”
Responding to questions on Treasury Single Account (TSA), Emefiele, said that its introduction 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, adding, “It is unfortunate that this is the way the banks have interpreted it. When I was in the bank, how much loan did I give you as a Small and Medium-sized enterprise?”