By Nkemdi Kanu
The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has made a frank disclosure to Nigerians that it is not yet “Uhuru”as the road to the country’s full economic recovery is still tough and rough.
Emefiele made the revelation on Wednesday, revealing further that contrary to insinuations, the country does operate multiple exchange rates.
According to him “What is obtainable in the country,” he said, “is multiple windows designed to stabilise the exchange market”.
Emefiele spoke when he appeared before the Senate Committee on Banking, Insurance and other Financial Institutions for screening for reappointment as CBN Governor for another five-year term.
He criticized the high level of disregard and disrespect of policies and laws of the country.
He observed that the Federal Government designs policies and puts laws in place aimed at growing the economy, but that the challenge lies with implementation.
He said that there was no doubt that observing policies and laws put in place by the government was a sure way of growing the country’s economy, just as he took time to explain what the apex bank did to lift the country out of recession.
He swore that those who work to circumvent and flout the laws of the country would no longer be spared because they will be apprehended.
But he expressed worry over the country’s rapid population growth rate warning that steps must be taken to put in place policies that would take care of the projected 425 million people in 2050.
Said Emefiele, “We just came back from the IMF/World Bank programme in April. And in the World Bank’s/IMF’s World Economic Outlook, Nigeria is positioned as a country whose population will grow and rise to over 425 million people by the year 2050.
“That will present Nigeria as a country with the third largest population in the world after China and India and indeed surpassing the United States of America in population.
“I worry and I do think that we all should worry that a lot of work needs to be done to make sure that we are able to put in place policies that will make life good for this 425 million people when we are the third largest population in the world.
“So, we from the Central Bank of Nigeria from the monetary policy side, have come to the realisation that using the instrumentality of the Anchor Borrowers Programme where access to credit is being provided to our masses all over the country, that it will be a way to generate employment and boost economic activity amongst our rural population.
“The results are there to see that as a result of our Anchor Borrowers Programme where we have disbursed over N190 billion to over 1.1 million smallholder farmers, cultivating over 1.3 million hectares of land, that we need to do more of this.
“As we do this, we make finance available at low-interest rate, we make access to credit easy for our people. And in doing this, we will be able to create jobs for them and improve the livelihood of our people.
“That is a sole thing that we make. And I am very optimistic that this can be achieved.”
He noted further that “I went to one Asian country, I entered the country happy but I came out of the country sadly. Sad because I could see the level of development that this country has achieved over the last 50 years.
“And I cast my mind back and look at my country Nigeria that what have we achieved? This is what gives me the push that at my age of 57, I saw this country when it was good.
“I am looking at the country today and I am saying I don’t want to say it is bad but I want to say that we have a lot of work to do; because the country has no doubt receded somewhat.
“So, from our side in the monetary policy, we will do everything possible to ensure that with the mandate that is bestowed on us, we will pull this country forward”.
On multiple exchange rate he said, “A couple of people have raised issues that we have multiple exchange rates. And we have said we do not have multiple exchange rates. When you talk of multiple exchange rates, you talk about divergence in exchange rate. Substantially today, our rates have converged around N360 to $1. Because the investors and exporters will know, which is the dominant market for procurement of foreign exchange today, it hovers around that rate.
“But what you will find is multiple windows and we don’t have any apologies for it”.
