Monetary Policy alone cannot solve Nigeria’s foreign exchange problems — Emefiele

Central Bank of Nigeria (CBN) Governor Godwin Emefiele on Thursday called for “urgent design and steadfast implementation of other supportive, structural, and complementary policies that are broad based, coordinated and focused on complementing the work of the monetary authority.” This, he explained, is necessary as Monetary Policy alone cannot solve Nigeria’s foreign exchange problems.

Giving the opening remarks for the Biannual Non-Oil Export Summit held at Eko Hotels, Lagos, Emefiele said: “The Nigerian economy has been challenged in many fronts in recent years due to a combination of local and global factors. Disruptions due to the COVID-19 pandemic, delays in global logistic value chains and local security challenges have exerted undue pressure on our economy, making macroeconomic management very difficult. These factors impacted oil production and prices, disrupted trade and exports, reduced capital inflows and impacted food production. They also exposed the fragility of the Nigerian economy and the need for a more diversified economy.

“Yet, in the face of these challenges, the Central Bank of Nigeria has been confronted with rising demand for foreign exchange for both goods, services, and other needs. With this unabating demand, the Bank has been working to manage both the demand and supply side to meet foreign exchange obligations.

“However, Monetary Policy alone cannot bear all the burden of the expected adjustments needed to manage these difficulties. These problems call for urgent design and steadfast implementation of other supportive, structural, and complementary policies that are broad based, coordinated and focused on complementing the work of the monetary authority.”

Emefiele reminded his listeners that “no country is promised greatness by anyone. Instead, citizens have to roll up their sleeves and work to achieve greatness.”

He quoted renowned Canadian Economist Peter Howitt, who once said: “Economies that fail to transform themselves with the passage of time will fall off the growth path sooner rather than later.”

Concluding, the CBN Governor said: “Therefore, this is the time for all of us to work together to reposition Nigeria on a growth trajectory by taking diversification of the economy serious business. This is the time to start working in synergy for the good of our nation. This is the time for us as a Banking Community to do more and support exporters who have been flying the flag of Nigeria in the international market space. There is indeed no better time than now!”