By Emma Ogbuehi
The Central Bank Governor, Godwin Emefiele, has dispelled fears on the nation’s foreign reserves, saying the reserves are strong and getting stronger by the day. He also announced financial instrument for 100 targeted private sector companies in 100 days, commencing November 1.
The explanation by the CBN governor came on the heels of insinuations among Nigerians that the economic downturn in the country and dwindling value of the national currency, the Naira, may affect the strength of the foreign exchange reserves.
Emefiele made the remarks at the official adoption of the Central Bank Digital Currency (CBDC) and the introduction of the eNaira, which the President, Muhammadu Buhari, said, would enable the government to send direct payments to citizens eligible for specific welfare programmes as well as foster cross border trade, among other benefits.
”As custodians of your national reserves, let me first assure you that there is no cause for alarm. Our FX reserves are strong and indeed getting stronger by the day, crossing the 40 billion USD mark, and is one of the highest in Africa – and growing”, the CBN governor announced.
He however warned that Nigeria must stop frittering its reserves on cheap imports and currency speculators, advocating a return to an employment-led growth anchored on productivity and rewarding producers of local goods, services, innovation and new technologies
The CBN governor, who blamed the preference for consumption economy by Nigerians as against the local production base, for the country’s piteous economic situation, called for a change of orientation. “We must return to massive homemade production; we must get our people working again. We must create the economic environment for massive domestic production and significant non-oil exports”, he stated.
Also, in addition to all policies and actions of the CBN to support the economy especially through the trying times of COVID-19, Emefiele announced a new financial instrument titled “The 100 for 100 PPP – Policy on Production and Productivity”, which will be anchored in the Development Finance Department under his direct supervision.
He explained that under this policy the CBN would advertise, screen, scrutinize and financially support 100 targeted private sector companies in 100 days, beginning from November 1, 2021, and rolling over every 100 days with new set of 100 companies, whose names will be published in National Dailies for Nigerians to verify and confirm.
