The Governor of the Central Bank of Nigeria, Godwin Emefiele has mentioned that the challenges dealing with Nigeria’s financial system are of a world dimension and never peculiar to Nigeria.
Emefiele mentioned this whereas given his speech on the 55th Annual Bankers Dinner hosted by the Chartered Institute of Bankers of Nigeria (CIBN) 0n Friday, November 27, 2020.
In his opening tackle, Mr. Emefiele congratulated the CIBN for the annual occasion, which he was attending for the sixth time since assuming the position of CBN Governor in June 2014.
In keeping with him, every of the dinners offered him ample alternative to debate with the important thing stakeholders within the banking and finance neighborhood on vital points and occasions shaping the financial system, in addition to coverage measures put in place by the CBN in the direction of revamping and rising the financial system.
He enumerated a number of points and challenges dealing with the financial system, which weren’t peculiar to Nigeria however international. Therefore, nothing for the nation to panic about.
In his phrases, “We confess that the issue we face at this time is of a world dimension. The World Financial system is challenged, identical to the Nigerian financial system. My attraction to our media analysts is that in the midst of conducting their evaluation of the Nigerian financial system, they need to realise that their public feedback, notably if they’re alarmist, might create panic in the environment.
“We cherish their counsel, but urge that they be more constructive in their pungent criticism as this could hamper our efforts to return our country and economy back to recovery. When you over dramatize a problem, you create panic that slows the process of recovery.”
In keeping with Emefiele, the occasions have been difficult, because the COVID-19 pandemic fully ravaged the worldwide financial system, however it was fairly reassuring {that a} resolution would quickly emerge, with the studies of developments of applicable vaccines by a number of companies to deal with the dreaded illness.
Mr. Emefiele mentioned, “Like different economies, the Nigerian financial system was not immune from the COVID-19 shock in 2020. Nigeria’s gross home product (GDP) contracted by -3.four p.c within the third quarter, a welcome enchancment from the – 6.1 p.c recorded within the second quarter. The damaging fee of progress was as a consequence of a sequence of exterior elements along with the lockdown measures, imposed so as to curtail the unfold of the virus.”
Emefiele challenged the banks to optimally harness the large value-chain alternatives in a number of sectors of the financial system by their intermediation capabilities, saying:
“Let me additionally add that whereas COVID-19 has introduced on a number of challenges to our financial system and certainly the banking sector, it provides a novel alternative for us to construct a extra resilient financial system that’s higher capable of include exterior shocks, while supporting progress and wealth creation in key sectors of our financial system.
“Proactive steps on the a part of stakeholders within the banking and monetary system in supporting the expansion of sectors similar to agriculture, ICT and infrastructure, will strengthen our means to take care of the challenges which have been introduced on by COVID-19, whereas enabling the expansion of our financial system usually.”
Backside line
With a sustained and constant implementation of the intervention measures, the Nigerian financial system is predicted to rebound from recession by the primary quarter of 2021 (Q1 2021).
Nevertheless, this relies to a big extent, on the total restoration of financial actions in key sectors, in addition to the manufacturing of applicable COVID vaccines that will likely be made out there to tens of millions of individuals the world over.
