Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso has said that
Nigeria’s economy requires stringent reforms to regain its strength, with an economy that grew at 1.8 per cent for nine consecutive years, money supply growing at about 13 per cent and ways and means that set a new world record.
Cardoso made this known while addressing participants at the 2024 yearly Bankers’ Committee retreat in Abuja on Friday.
According to him, there are no alternatives to the ongoing economic reforms of the current administration.
He said, “A situation where over the past eight and nine years, the economy grew on average at 1.8 per cent per annum and money supply grew at about 13 per cent; a situation where outstanding Ways and Means, as of the end of 2022, was about 11 per cent of GDP, arguably a world record. Now, with such challenges, the responses to those have to be equally robust and challenging.”
The CBN helmsman insisted that the Tinubu administration inherited the challenges, hence the unpalatable tools that have been adopted so far, adding: “Some of the tools may not necessarily be easy and palatable, but they are necessary. We are not in a period of ordinary times.”
While urging the committee to design practical solutions to the ailing economy amid expansion of poverty, rising inflation, infrastructure deficits, insecurity, unemployment, among others, Cardoso maintained that the situation is not all bleak.
He explained: “In recent times, we have witnessed significant strides made by both government and private partners in leveraging the immense opportunities before us to rewrite our nation’s story. However, while progress has been steady, it is evident that the road ahead remains long. The work before us requires focus, innovation and an unwavering resolve to reshape our collective future.”
The issues that require urgent attention, Cardoso said, include what steps must the stakeholders take to improve the business environment for all, how can they better leverage public-private partnerships for infrastructure development and what are the most effective ways to close skill gaps in the workforce?
In attendance was Vice President Kashim Shettima, who was represented by his Special Adviser on Economic Affairs, Dr. Tope Fasua.
While the Vice President charged banks to consolidate their role as catalysts of economic growth and development, he observed that the robust profitability that is declared by banks should be reflected in the GDP growth numbers posted by the country.
Like Cardoso, Shettima admitted difficulties in implementing the ongoing economic reforms.
He added: “None of these reforms are easy to implement but we can see that despite it all they are beginning to yield results. We only ask that our people exercise a little more perseverance while the reforms take root. The unification of the Naira has coincided with some weakening in our currency which in turn has caused some behavioural adjustment among our people.”
On tax reform, the Vice President noted that the reforms aim to enhance public budgets towards a larger per capita for the benefit of every Nigerian.
He said: “Nigerians say many things about our debt level, which is currently about 52 per cent or which may go further down to about 10 per cent post-revision; but it is evident that public revenues are a bigger issue. Compared with Kenya and South Africa, our revenues tell an unpalatable story about our economy and our attitude to paying up what is due to government at every level.”
He identified the banking sector as the most critical ally of the government regarding the pursuit and achievement of a one trillion-dollar economy.
Shettima hinted that the efforts by the National Bureau of Statistics (NBS) at rebasing the economy, GDP and consumer price index are on course, saying: “The last effort was over 10 years ago. The recommended period is five years. We have every cause to conduct this process given the dynamism of our economy and our improvement in data capture and processing, which is enabled by more innovative technologies. Perhaps the results that may be made in January 2025 will give us a spark and a spring to more logically pursue the targeted results.”
