The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele unveils the policy direction of the CBN under his leadership for the next 5-years (2019 – 2024) on Monday. Said the target is single-digit-Inflation, accelerating rate of unemployment and double digit economic growth.
“…working closely with our fiscal authorities, we pledge to target a double digit growth by the next five years and at the CBN, we commit to working assiduously to bringing down inflation to single digit; while accelerating the rate of employment”
According to Emefiele, the CBN vision for the next 5-years is driven primarily by the need to support continued growth and development of the Nigerian Economy. But the Apex bank chief is unmindful of some global factor that may affect Nigeria’s economy which he listed as.
Rising trade tension between the United States and China, United States and Mexico, and subdued trade in the eurozone. As well as other emerging economies such as China, India, South Africa, Brazil, Argentina and Turkey, are affecting the global outlook for 2019 and 2020…
…the rising trade tension and the potential slowdown in growth in advance and emerging economies and the impact it could have on capital flow to emerging markets. The risk of sudden stop and reversal of capital flows has increased, as some investors weighed the benefits of investing in fixed assets in the advanced economy relative to assets in emerging markets.
…Rising volatilities in the crude oil markets occasioned by the rapid increase in the supply of shale oil by the United State….The rise in U.S production continues to put on downward pressure on crude oil prices despite restrictions on crude oil output by the OPEC members and sanctions by the U.S on the purchase of crude oil from Iran and Venezuela.
The governor further summarises the CBN vision of the Bank over the next 5 years in a 5 point plan as follows:
- Preserve domestic macroeconomic and financial stability
- Foster the development of a robust payments system infrastructure to increase access to finance.
- Work with the Deposit Money Banks to improve access to credit for Farmers, MSMEs, Consumer credit and Mortgage facilities. Including the Creative industry and the Education Sector.
- Grow External reserves
- Diversification of the economy through intervention programs in the agriculture and manufacturing sectors.
We are confident that when implemented, these measures will help to insulate our economy from potential shocks in the global economy. In my second term in office, part of my pledge, is to work to the best of my abilities in fulfilling these objectives. Emefiele added