In all countries of the world, the Central Bank, as an institution, in its policies and programmes, drives the economy in the direction it must go. Nigeria is not an exception. In the case of Nigeria, as applies internationally, one of its primary mandates is to give the economy a monetary policy, a set of tools used to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements, designed to provide the impetus, serve as a catalyst needed by the economic system to function effectively and efficiently.
When Godwin Emefiele assumed office in June 2014 as Governor of Central Bank, he decided to expand his role in that capacity to include other development issues that are needed to ensure that the economy is run on an even keel. In his almost 10 years on the saddle, he is building an economy that has been positively turned around and positioned to compete in line with international best practices.
His point of emphasis was and still is the diversification of the economy by weaning it off the harmful dependence on one product- Fossil fuel. In his valid argument, an economy that depends almost exclusively on the proceeds of one product that is intricately susceptible to the vagaries of market forces that are beyond the control of the country, is condemned to impacts that are inimical to its growth and development.
The two major areas that he is convinced that have the potential to lift the burden the economy bear by the over dependence on oil were agriculture and non-oil, solid minerals. Even before his emergence at the helm of the management of CBN, Nigerians agree that the nation has the capacity and capability to feed itself and have excess for export. What was lacking was the political will and the financial muscle of an institution like the apex bank.
Fortunately, he got the buy- in of the then President Muhammadu Buhari on the revolutionary Anchor Borrowers Programme (ABP) that has turned agriculture from a way of life to profitable business attracting huge investment both local and foreign. The decision to ban 44 goods that can easily be produced in Nigeria opened the mind of the real sector in the country to the possibilities that were hitherto glossed over particularly in agro- business and processing. To encourage this sector to take the bull by the horn, the CBN put in place a lot of incentives and facilities that were easily accessed especially in the area of financing the importation of machineries and spares.
It is important to mention that on the watch of Emefiele at the CBN, product associations such as rice farmers, maize farmers, cotton farmer, cocoa farmers, oil palm farmers, wheat farmers all came alive and assumed pivotal roles and centres that gave live to the agro-policy of the government which the apex bank gave a solid backing. Even more importantly is the revival of the small holder sub-sector which empowered many and encouraged them to see farming not just as a vocation, to feed oneself and family but also as a business that can grow to become generational.
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Not only the farmers benefitted from the financial thrust Emefiele provided in the sector. Industries that process the primary products came on stream to be part of the agriculture value chain that saved the nation huge sums in foreign exchange that was before Emefiele’s intervention wasted on importation. Textile industries that were hitherto moribund were reactivated. Rice millers on an industrial scale came on stream with huge foreign participation. Maize processors were not left out in the groundswell of the policies that made it possible for Nigeria to be self-sufficient in those products. Cocoa and oil palm were not left out in this rejuvenated agricultural sector.
Also, for once, it became fashionable to eat made in Nigeria rice, wear cotton fabrics that are weaved in the country just to mention a few among the deluge of processed agro – products that flooded the Nigerian market in the wake of the determination of the apex bank to turn the economy around for good.
The approach he adopted was multi-sectoral, that is to say, the organized private sector (OPS) and the micro, small and medium enterprises (MSMEs) all benefitted. The approach was extended to research and production. For once, in the economic history of the nation, funding was not part of the headache in business activities. Other policies like the ease of doing business in the country came in handy to give a helping hand to investors who wanted to take advantage of the new drive to either establish new businesses or consolidate on existing ones. The Emefiele phenomenon became a desirable wakeup call to Nigerians who responded positively.
The CBN, in the wake of the Covid-19 pandemic, became an engine of growth and in the process mobilized the latent forces in the country in such a manner that the pandemic, with all its challenges, created new opportunities that eased the pains that were part of that ailment that shut down the world. The palliatives the CBN in collaboration with Corporate Nigeria mustered became a life saver for most.
The apex bank, on the watch of the Governor, explored the rich reserves of development economics which focuses on improving fiscal, economic, and social conditions in the country. In this regard, his policies touched on other non-financial sectors such as health, education, working conditions, domestic and international policies, and market conditions with a single-minded purpose of improving them. It was in this regard that universities received huge funding from the CBN for the improvement of infrastructure, pharmaceutical industries got grants to enable them expand their manufacturing capabilities, the energy sector got facilities in the wake of the privatization of the sector.
It is also pertinent to call attention to the forays of the CBN in the areas of financial inclusion and the introduction of cashless policy that has spread like wildfire and creating immense job opportunities. Today, electronic banking once thought to be elitist, is presently a fad that has caught on.
– Gilbert, an economic analyst wrote from Lagos.
