Emefiele says Nigeria economy still strong

The Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, on Tuesday declared that the strategic health of the country’s financial system was still strong.

He also painted a gloomy picture of the sharp decline in the price of oil and commodity prices to the country’s economy.

Emefiele spoke at a closed session with Senators in line with Section 8 of the CBN Act, 2007, which required that the Governor of the Bank provide, to the National Assembly, periodic updates on the activities of the Bank as well as the performance of the economy.

After session, Senate President, Abubakar Bukola Saraki noted that the Senate in a closed door session with the CBN Governor deliberated on the new foreign exchange management policy and the determination of foreign exchange market by demand and supply mechanism.

He further said that the session also deliberated on the need to continue to grow the economy with focus on its diversification.

A statement by the Senate said that the CBN Governor presented a comprehensive and lucid account of the performance of the Nigerian economy in the last one year.

It said that his presentation began with current global economic conditions, which has been characterized by external shocks including the sharp decline in commodity prices, the geopolitical tensions along important global trading routes, and tightening of monetary policy in the United States of America.

Senate explains further that the CBN boss drew linkages of these occurrences with the Nigerian economy, especially with respect to the over 70 per cent decline in oil prices from about S116 per barrel in June 2014 to about $30 per barrel earlier in the year.

“The Governor’s presentation also gave us an insight into the Bank’s decisions in the Foreign Exchange Market, and the rationale underlying the recent re-introduction of a Flexible Exchange Rate Mechanism in Nigeria.

“He also delved into the health of the financial system and discussed the Bank’s detailed examinations of financial institutions as well as its zero tolerance for insider dealings by Board and Management of deposit money banks.

“In sum, the Governor declared that the Strategic health of Nigeria’s financial system is still strong at this time.”

“But having carefully considered the policies of the CBN, the Senate would like to commend and support these policies because they are mostly geared towards increasing local production, creating jobs here in Nigeria, safeguarding our commonwealth, and expanding economic opportunities and growth in Nigeria,” the statement said.

The Senate insisted that it is critical that all Nigerians put hands together to seek long term solutions to the country’s underlying problem of non diversification of foreign exchange earnings and revenues, rather than pointing fingers or apportioning blames.

The Senators noted that they “believe strongly in the resilience of the Nigerian economy and the ingenuity of the Nigerian people and as such, we are confident that we will all pull through these difficulties and come out as a much better, equitable, and prosperous nation.”