Economic Development: Nigerian Banks Doing Their Best, Says CBN Governor

Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele on Saturday in Lagos urged all to appreciate the efforts of the nation’s banks at economic development as they carry out their role of financial inter mediation rather than outright condemnation at every opportunity.
He spoke when he was unveiled as The Guardian Economic Personality of the Year 2017 in recognition of his contribution to stabilizing the financial sector amidst recession as well as the Bank’s effort in development financing.
Emefiele who was apparently responding to a statement by Prof. Pat Utomi, who on a panel of discussants during the event described Nigerian banks as lazy, particularly recognized the role of the banks to ensure the success of the importers and exporters foreign exchange window introduced by the CBN about a year ago.
Presenting the award to Emefiele, the President and Chairman of Council, Chartered Institute of bankers of Nigeria (CIBN), Professor Segun Ajibola, commended Emefiele and CBN management for their efforts at managing the Nigerian financial sector and intervening in critical sectors of the economy, particularly agriculture.
He noted that following a joint initiative by the banks in 2016, each Nigerian bank contributed 5% of its profit after tax to support the development initiatives of the government and that the fund was nearing the N60bn mark.
As part of the developmental strides, he said the CBN and deposit money banks had concluded plans to unfold the disbursement criteria of the funds to the vulnerable sector in Nigeria, which he said needed access to credit.
On the efforts by the CBN to counter the adverse effects of the global economic shocks, he said the CBN embarked on a number of short- term and long-term policies such as a cycle of monetary tightening to rein in inflation; external reserves management through the restriction of foreign exchange for imports of goods that can be produced in Nigeria.
While noting that the level of credit in the domestic economy channelled to the private sector was critically below the levels needed to put the Nigerian economy on the path of balanced, sustainable, and inclusive growths, Emefiele assured that the CBN and Nigerian banks would continue to be catalysts to development in Nigeria, particularly as it concerned the vulnerable and needy in the society.
In spite of the gains recorded, he said Nigeria remained significantly below its potential and must ensure that it sustains a properly functioning financial system that channels credits to critical high impact productive real sector.
While noting that a lot still needed to be done if Nigeria must achieve the desired balanced economic growth and development on a sustainable and inclusive level, he stressed the need for a well-coordinated and effective public private partnership to enable Nigeria achieve its potentials.
Present at the ceremony were the CBN Deputy Governor, Financial System Stability (FSS), Mrs. Aishah Ahmad; Chief Executives of Deposit Money Banks; President, Dangote Group, Alhaji Aliko Dangote; member of the Monetary Policy Committee, Professor Adeola Festus Adenikinju; and CBN Departmental Directors, among others.

Caption: Emefiele receiving the award from Prof Segun Ajibola, President/Chairman, Council of the Chartered Institute of Bankers of Nigeria (CIBN) on Saturday, April 7, 2018.

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