Emefiele: My Focus is on Robust Monetary Policy, Building Strong Financial System

•Says CBN disbursed N948bn to boost farming, 12.5million jobs created

James Emejo in Abuja and
Victor Ogunje in Ado Ekiti

Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday, reiterated that he was currently focused on achieving a robust monetary policy and fighting inflation, which he stressed remained a global problem. Emefiele stated this via his verified Twitter handle, @GodwinIEmefiele, on the same day he revealed that the federal government had disbursed a total of N948 billion to 4,478,381 smallholder farmers to boost food production in Nigeria.

In the Tweet, Emefiele stated that he was committed to building a strong financial system in an increasingly uncertain global economy. He said he was also focused on boosting development finance and supporting farmers and manufacturers in the apex bank’s self-sufficiency and import substitution drive.

He added that he remained committed to raising N15 trillion for the Infrastructure Company (InfraCo) to boost infrastructure financing in the country.

The CBN governor furthermore stated that he was committed to delivering a world-class International Financial Centre (IFC) in Lagos as well as providing the administration of President Muhammadu Buhari with the needed support to finish strong.

Earlier in February, Emefiele, while reacting to speculations around his purported interest in the 2023 presidential race, had said it was the prerogative of President Muhammadu Buhari to execute his succession plan in line with global best practice, for good governance and continuing peace and progress of the country.

The CBN governor stressed that he was focused on his job, even as he pledged to continue to support the federal government’s economic recovery drive.

Meanwhile, at the Ekiti State University, Ado Ekiti, while presenting a convocation lecture titled, “The Role of Central Bank in Managing Economic Downturns,” to mark the 40th anniversary of the university yesterday, Emefiele revealed that the federal government had disbursed a total of N948 billion to 4,478,381 smallholder farmers to boost food production in the country.

He added that apart from encouraging farming, the programme had generated an aggregate of 12.5 million direct and indirect jobs for the Nigerian youth.

The CBN governor said under the credit facility to help households and businesses that suffered significant losses during the pandemic, the central bank had disbursed N368.79 billion to 778,000 beneficiaries.

Giving the breakdown of how the facility was disbursed, Emefiele revealed that 648,052 households and owners of small and medium scale Enterprises (SMEs) benefited from the federal government-driven policy.

He stated, “As you all know, one of the major challenges facing Nigerian economy is over-reliance on revenues and foreign exchange earnings from the sale of crude oil, even though the petrol represents just 10 per cent of our Gross Domestic Product (GDP).

“More so, the non-oil sector, particularly agricultural and manufacturing sectors, which contributes about 30 and 13 per cent to our GDP, have been confronted with low investments, inadequate credit to real sector and weak infrastructure.

“Furthermore, with an annual population growth rate of 2.8 per cent, it was important that all efforts are made available for Nigerians, particularly in sectors that had the potential to absorb youths.

“We were aware that if necessary support was given to households and business, productivity will rise and investment will flow into our economy.”

Emefiele hinged the current economic downturn and hardship on the economic recession of 2015-2017 and the COVID-19 pandemic that led to revenue drop and reduction in foreign investment portfolio.

In his submission, Vice Chancellor of EKSU, Professor Edward Olanipekun, described the 40 years of the university as impactful in the life of the state, saying the university has been a reliable training ground for future leaders.

Olanipekun said though the university was experiencing some challenges, no effort would be spared to keep the flag flying in its resolve to be a good citadel of learning for Nigerians. 

Chairman of the occasion and Catholic Bishop of Ekiti Diocese, Most Reverend Felix Ajakaye, urged the governments to be more pragmatic in the implementation of its policies for them to be impactful on the citizens.

“Our thought and actions must be practical-oriented. We have to go beyond lectures by being practical in dealing with policies that can benefit poor Nigerians,” the Bishop advised.