Emefiele: Nigeria is not sliding into recession but…
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.”