EMEFIELE TO BANKS: OFFER AN FX SHORTAGE SOLUTION

Exhorts them to meet consumer FX needs without relying on the government

Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), acknowledged Tuesday that there is a lack of foreign currency to cover legitimate import demands of Nigerians and he tasked the nation's financial institutions to offer solutions.

The Bankers' Committee Retreat in Lagos, the CBN governor delivered a speech on the topic of “Increasing the Productive Base of the Nigerian Economy and Non-Oil Export Revenues.”

“We must think about how we are less dependent on crude earnings in an endeavor to walk towards diversifying the nation's economy,” he said. We are in the business of providing services to our customers, and providing services to clients, those customers have import needs and require foreign exchange to carry out those demands.

There is a glaring lack of foreign currency today, we still have to serve the demands of people. We have no choice but to take action to ensure that everything is resolved because the market is hard. That is why we made the decision to concentrate on RT200 at this retreat because, in essence, we need to consider how to source foreign exchange for our customers' needs without having to rely on crude revenues, which, as we all know, have decreased to zero or nearly zero compared to the $3 billion monthly that we were receiving in 2014.

He exhorted the bankers to think creatively and to make every effort to consider how to satisfy the customers' import needs.

The pervasive of food and cost-of-living crises, the CBN governor stated: According to the World Bank, around 23 advanced economies have restricted the export of 33 food products. As a result, we are witnessing increased limits on food exports.

Regarding diversification, he added: The Central Bank of Nigeria began the RT200 initiative in February 2022 in view of the need to strengthen the fundamentals of the Nigerian economy, diversify from dependence on oil inflows, and avoid the crippling pressures in the FX market. This project, which aims to boost non-oil exports and has a target of $200 billion in FX income in three to five years, has received widespread support and is being led by the organizations that make up the Bankers' Committee. The Bankers' Committee should be able to know the crucial role played by the financial system in promoting the expansion of the productive base of the economy in order to support national development and economic progress.

We must contribute in a productive way to create the services and increase non-oil exports. We will have to examine the results of RT200's implementation during the Bankers' Committee Retreat in 2022.

I encourage and challenge everyone presents at this retreat this morning to identify creative and sustainable solutions to increase the productive base of Nigeria's non-oil sector, realities and current price frailties. The structural problems limiting Nigeria's earnings from non-oil exports must be postponed any longer. Our economy needs to be made more resilient and immunize itself against exogenous shocks.

We must identify doable initiatives to make sure the Bankers Committee keeps making a meaningful contribution to the prosperity and development of our beautiful country.