Eme­fiele: Nige­ria is not slid­ing into re­ces­sion but…

Daily Trust - - BUSINESS - From Hamisu Muham­mad, Lima, Peru

Gover­nor of the Cen­tral Bank of Nige­ria (CBN), Mr God­win Eme­fiele has said Nige­ria is not slid­ing into re­ces­sion as claimed by some ex­perts, say­ing the coun­try’s econ­omy is merely a vic­tim of the global slow growth due to the fall in com­modi­ties’ prices which af­fected many coun­tries in the world.

Eme­fiele told jour­nal­ists at the end of the 2015 In­ter­na­tional Mon­e­tary Fund/ World Bank An­nual Meet­ings in Peru that the coun­try was nowhere close to re­ces­sion as claimed by some an­a­lysts. He, how­ever, ad­mit­ted that more ef­forts are needed to cre­ate pos­i­tive growth.

“What we are say­ing is that be­cause we have seen two suc­ces­sive quar­ters of slow growth, we all need to put in place more ef­forts by both the mon­e­tary author­i­ties and the fis­cal author­i­ties so that we can see a re­ver­sal and in­crease growth, rather than a slow growth,” said Eme­fiele.

“Even the global econ­omy growth has been re­vised by the IMF out­look, from 3.8 per cent in April to 3.1 at this meet­ing. That, for Africa, has been re­viewed down­ward from about 5 per cent to 3.75 per cent at this meet­ing and 4.2 per cent in 2016. So ev­ery­body is af­fected, not only Nige­ria,” he added.

The gover­nor said it is part of the rea­sons, the bank de­cided to sup­port the lo­cal pro­duc­ers of the 41 items that have com­par­a­tive ad­van­tage by ban­ning ac­cess to for­eign ex­change by the im­porters of such com­modi­ties.

“What we did was to re­strict ac­cess of forex to those items that we think we can pro­duce com­pet­i­tively lo­cally to im­prove our lo­cal in­dus­tries due to the chal­lenges we have due to the fall in the prices of crude oil rev­enue. That de­ci­sion still stand’’, he said.

The gover­nor also ex­pressed con­cerns over the pulling out of in­vest­ments from the emerg­ing mar­ket in re­cent time. “I must tell you that in the third quar­ter of this year alone, I read in a re­port that said the cap­i­tal out­flow that left the emerg­ing mar­kets and fron­tier mar­kets reached al­most $48bn, which means that the in­vestors are pulling out their funds and look­ing into the economies like the US and the rest where they feel there are op­por­tu­ni­ties,” he said

Ac­cord­ing to him, the in­vestors have that fear that, drop in com­mod­ity prices will af­fect those coun­tries that de­pend solely on com­mod­ity ex­ports. “And that is why, now, it is time for us to think as na­tion­al­is­tic Nige­ri­ans that we have to carry our cross by our­selves.”

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