Positive Outcomes Justify CBN’s Interventions – Emefiele
BY EDMOND ODOK – The Central Bank of Nigeria (CBN) says positive outcomes of its various interventions in the real sectors of the economy are morale boosters for sustainable growth and development in the country.
According to the apex Bank Governor, Mr Godwin Emefiele, innovative ideas around the intervention programmes have continued to justify its approach in addressing issues in the real sector.
Emefiele, who spoke at the 32nd seminar for Finance Correspondents and Business Editors, in Akure, the Ondo State capital said; “Being a developing economy, our approach to monetary policy must incorporate context. We do this by innovating around the use of available instruments.
“We understand that monetary policy must coordinate well with fiscal policy towards addressing the numerous developmental challenges our nation faces.”
For the CBN governor, it is cheering that “the enabling statute envisages this and empowers us to intervene where and when necessary”, adding; “Under my watch, the Bank has done this through various development finance initiatives.
“And with the benefit of hindsight now, we can safely say that the outcomes have so far justified our approach.”
Emefiele, who described as ‘very pertinent’ the seminar theme: “EXCHANGE RATE MANAGEMENT AND ECONOMIC DIVERSIFICATION IN NIGERIA: THE PAVE (Produce, Add Value and Export) OPTION”, said modest achievements by the apex bank notwithstanding, “we cannot afford to rest on our oars as the work is far from over.”
Also commenting on the CBN’s Produce, Add Value and Export (PAVE) policy, the Governor said it is “expected to make Nigerians consume what they produce, add value to it, and even export the surplus.
“It is an initiative akin to South-East Asia’s much referenced export-led industrialization policy which changed the economic fortunes of countries such as South Korea, Taiwan, Malaysia and Singapore.”
Furthermore, he explained that “PAVE is designed to be the key for fast-tracking a bucket of substitutes to Crude oil export. It encourages backward integration for the local production of select items.”
Also acknowledging that COVID-19 pandemic is one of the biggest crises that has faced mankind in recent history, Mr Emefiele said; “The pandemic impacted economies, and disrupted business activities globally.
“Expectedly, Nigeria like most commodity-dependent countries was not spared the deleterious impact of the pandemic, given our dependence on crude oil export as a major source of revenue and foreign exchange. It is to mitigate against future severe consequences of shocks beyond our control that we must all join hands to ensure the success of PAVE. It is a clarion call to patriotism.”
He however said despite the headwinds associated with the pandemic, CBN has worked “very hard to ensure that Nigeria remains a vibrant economy with a diversified mix of opportunities across sectors such as ICT, Manufacturing, Solid Minerals, Trade and Agriculture.”
