Governor of Nigeria’s Central Bank, Godwin Emefiele, has pointed out two policies he has implemented, that have saved the country’s economy from total collapse.
Emefiele claims that if not for his intervention with those policies, the current recession would have been more critical.
He said this while speaking at the All Civil Society National Economic Summit in Abuja, in a message conveyed by his aide, Emmanuel Ukeje.
According to him, the first way he achieved that, was to ensure bank recapitalization.
“For instance, prior to recapaitalition, the total number of commercial banks could not match asset base of a single South African bank. But this is not the case anymore as our banks are now robust.” he said.
Secondly, the adoption of the Treasury Single Account (TSA) was targeted at blocking loopholes in the banking sector.
“The same goes for TSA which removed sharp practices in some banks as instances arose where you had banks using government money lodged with them to buy government bonds.
“In other words, government was buying bonds back with their own cash through these banks which basically reaped the system,” Emefiele added.