Business
Nigerian Banks asked to lead in reviving economy
By ONYINYE NWACHUKWU, Abuja
THE Central Bank of Nigeria (CBN) says it expects Nigerian banks to lead in efforts at reviving ailing economy with increased lending to agriculture and the manufacturing – two key sectors central to the country’s economic revamp.
The CBN says with its intervention policies, which are largely implemented through banks to the target populace, there is added role for the commercial lenders in evolving innovative approach to the nation’s development agenda.
“Banks must come up with innovative solutions that will enable the finance sector to play a key role in driving Nigeria’s growth and development,” CBN governor, Godwin Emefiele stated, speaking at 2016 Bankers’ Committee retreat in Lagos.
The annual event hosts members of the Bankers’ Committee engage in strategic reviews of critical developments within the financial system and the economy.
The retreat – the 8th in the series, focused on the theme, the theme, “Economic Recovery: The Role of the Banking Sector.”
Emefiele noted that at a critical time in the country’s history, emphasis on diversification and support for its achievement must be accorded priority by bankers.
“The focus on economic recovery by bankers is timely, given the sustained external headwinds we are grappling with, triggered by several factors. Chief of such is the 70% plus decline in the price of crude oil between June 2014 and June 2016.
He said that the new move focuses on improving the productivity of farmers, manufacturers and firms, as well as their access to finance, in order to produce goods and services that can be made in Nigeria, thereby improving job creation and growth for the nation as a whole.
The bank chief reiterated that two key sectors are central to the recovery efforts agriculture and the manufacturing sectors.
“They are recognised worldwide as catalysts for rapid growth, job creation and poverty reduction. Agriculture, for example, remains the largest employer of labour in Nigeria and contributes about 24.2 percent of our GDP. For quite some time now, funding the necessary investment required for the transformation of the agriculture and manufacturing sectors has become a major priority of the CBN.
Million metric tonnes of rice will be produced in that state alone this year,” he added.
Lagos State Governor, AkinwunmiAmbode, equally charged banks to take their roles in the quest to revive the economy seriously.
Represented by the Deputy Governor, IdiatAdebule, he called for a change of orientation and support for policy instruments that are aimed at achieving the overall goal of reviving the economy.
He also assured that the suggestions of the bankers will be given due consideration by government and its agencies, with a view to serve as a guide in policy formulation.