Godwin Emefiele, CBN Governor |
The CBN boss
revealed this development during an Interactive Session with Media Editors in
Abuja. He declined to give details of the measures and modalities for their
implementation with the reason that doing so would be counter-productive and
pre-emptive.
Mr. Emefiele
made it clear that the Nigerian economy was not as bad as being portrayed when
compared with other economies in Africa and advised importers to restrict their
imports to raw materials and equipment rather than finished products and food
in order to reduce the pressure on the nation’s scarce foreign exchange.
In his own
words: “CBN will soon start a nationwide campaign to
sensitise Nigerians to items excluded from importation. This is part of efforts
to save more foreign exchange and stabilise the nation’s currency. The solution
to free fall of the naira is by controlling the demand for foreign currencies
such as the dollar. If we are able to reduce importation, the demand for the dollar
will fall automatically.”
The CBN
boss, who was a Group Managing Director of Zenith Bank Plc, also encouraged the
country to go back to the farm to produce what was needed.
He said: “Public servants should also engage in farming because the
only business public servants are allowed to engage in is farming, and you
don’t need power to farm tomato, vegetables or fish.”
He attributed
the intense pressure on the dollar and other currencies to unscrupulous
businessmen who engaged in illicit activities. He stated that the apex bank had
ensured reasonable stability in the value of the naira by keeping official
exchange to the dollar between N196 and N197 to the dollar.
He also
advised Nigerians to always approach their banks for their request for foreign
exchange at the official rate as against patronising the black market
operators. He, however, insisted that the 22 per cent depreciation of the naira
was reasonable when compared with other emerging economies adversely affected
by global economic recession.
He added: “Zambia, for example, has depreciated its currency by about
48 per cent, Angola by 25 per cent while Brazil depreciated its currency by
about 48 per cent from October last year till now. Our situation is not as bad
as people think. When you devalue, there must be a structural adjustment. We
have never followed up with structural adjustment. So, the approach we are
adopting at the moment is that, having done a 22-per cent adjustment in the
currency, let us structurally adjust our position.
“Let
us say, look, stop importing rice; stop importing toothpick; stop importing
tomato from South Africa; stop importing 20 million eggs daily from Africa. That’s
the gist of what we are saying. We are saying Nigeria can do without these
items. And the truth is that the reserves are no longer there.”
According to
the CBN boss, the apex bank had created the enabling environment to encourage
the growth of small scale businesses through the grant of soft loans to small
business operators, but only N60 billion of the more than N200 billion soft
loans meant for SMEs had been accessed so far.
He urged
Nigerians to be patient with the Buhari administration in its efforts at easing
the sufferings of Nigerians.
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