Global economic slowdown: No cause for panic ― Emefiele

Despite global economic headwinds resulting in continuous slow growth across continents, the unconventional policies of the Central bank of Nigeria (CBN) will ensure that Nigeria is insulated from meltdown if and when it eventually happens.

Governor of CBN, Mr Godwin Emefiele who stated this in Abuja on Monday in a keynote address to the African Economic Congress (AEC), which opened at the Shehu Yar’Adua Centre said: “Let me state categorically that while we should not trivialize the global headwinds, there is no cause for panic.”

He said the persistent global uncertainties especially since the 2008/2009 global financial crisis have been blessings in disguise, highlighting the nation’s vulnerabilities to global shocks due mainly to overdependence on commodity exports (crude oil) and huge imports of both capital and consumer goods.

According to him, the Anchor Borrowers Programme, which was launched in November 2015 program has supported more than 1.5m farmers across all the 36 states of Nigeria, in cultivating 16 different commodities over 1.4 million hectares of farmland.

“It has also supported the creation of over 2.5m jobs across the agricultural value chain.”

Also, Emefiele disclosed that activities in the industrial sector also witnessed significant improvement between August 2016 and September 2019, as the Purchasing Managers’ Index has risen for the 31st consecutive month.

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“It rose from a low of 42 per cent in August 2016 to 58.2 per cent in September 2019.

“This development was attributed to sustained supply of FX and the dogged implementation of our FX restriction on certain items.

“Because of our unconventional tools, we have recorded spectacular improvements in domestic production of most of the targeted items.”

Nigeria he noted, focused on agriculture and industry because they have the potential to create massive jobs thus expanding the GDP and forcing economic growth to percolate to the grassroots unlike crude oil.

“On the whole, Nigeria remains resilient with a positive outlook despite rising global uncertainties.

“It is also important to highlight improvements in Electronic Payments being witnessed in Nigeria as a result of deliberate policy initiatives targeted at making the Nigerian payment system safe, secure, efficient and internationally recognized.

“As result of the implementation of the PSV 2020 strategy Nigeria has witnessed impressive growth of electronic payments.

“PoS transactions increased by 4,692% (N2.27 trillion) from N48.46 billion in 2012 to N2.3 trillion at end-2018, Electronic transfers increased significantly by 1,967% (N76.53 trillion) from N3.89 trillion in 2012 to N80.42 trillion in 2018.

“In the same vein paper-based cheque transactions reduced by 32% (N2.45bn) from N7.48 billion in 2012 to N5.03 billion in 2018.”

He advised leaders of the African continent to be mindful of exploding population that has been projected to catapult population to double by 2050 and will compound other dire statistics like rising public debt, poor infrastructure, growing regional tensions, gender gaps, insecurity, income inequality, low trade volumes and other country specific factors which keep the African continent from reaching its full economic potential.

“What the continent requires is strong policy coordination and cooperation targeted at more sustainable approaches to economic management to support domestic production, investment and diversify the continent’s economies away from over reliance on commodity exports.

“Whilst much has been done, there is work yet left undone. We must commit to doing all it takes to ensure that Africa remains resilient within a dynamic global economic environment and drives for an inclusive, sustainable growth trajectory that guarantees economic prosperity for all on this great Continent.”