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The Central Bank of Nigeria (CBN) contiuned monetary intervention in the domestic economy will drive growth, and further helpe sustain econopmic quest that will galvanise development in the longrun.
Prof Ken Ife, a Chief Economic Strategist in ECOWAS Commission, and faculty member NDA Kaduna made this remark on Friday during the Finance Correspondents Association of Nigeria (FICAN) 2022 2nd edition monthly capacity building programme in Lagos.
Prof Ife whose paper presentation is themed “Economic Recovery and CBN RT 200 FX programme : Role of Banks and Export Promotion Institutions.” Said the apex bank economic invention is geared towards creating values.
According to him, “it is about creating values. Create more jobs. Increase revenue. Reverse the high forex rate and help in paying our debt.”
He said, the CBN strategy has helped in diversifying the economy more than it is being explained, saying that the non-oil sector is leading the economy currently.
Representing the contribuction of the oil and non-oil sector to the economy graphically, Prof Ife showewd that from the first to the fouth quarter of 2020 and 2021,the oil sector contributed a minimal of 9.50%, 8.93%, 8.73%, 5.87% and 8.16%, 9.25%,7.42% and 7.49% to the Gross Domestic Product, while the non-oil sector added 90.50%, 91.07%, 91.27%, 94.13% and 91.84%, 90.75%, 92.58% and 92.51% respectively.
“Our economy is becoming more resilient. The contribuction of the oil industry is going down as against the non-oil sector. The economy is getting more diversified. Will be able to address the mismatch in forex.”
Speaking specifically on the CBN’s introduction of RT 200 programme, Prof Ife said scheme will provide consessionary and long term funding for business people who are intrested in expanding existing plants or building brand new ones for the sole purpose of adding significant value to non-oil commodities before exporting them.
“Nigeria economy jumped out of recession in just one quarter (Dec 2020). This was possible because of quantitative monetary and fiscal policy responses, including a higher order of targeting of CBN’s domestic finance intervention at the real sector of the economy.”
Prof ife who said from 2015 till date crashes in oil prices resulted in loss of over $130 billion, said the infrastructure company by the apex bank, where substantial fund has been injected, will roll over the major govt infrastructure narative on the part to sustainability.
He said the CBN’s intervention which was necissitated by the pervassive insecurity, assymetric warfare and investment meltdown, will significantly boost local production of exportable commodities which may also serve as industrial raw materials for export processing.
