Central Bank of Nigeria, CBN has said that Development Finance is needed to engendering economic growth in the country.
CBN governor made this known in a chat with journalists in Abuja.
According to him, “barely three days after I resumed, I unveiled CBN’s five-year plan, which explained the broad contours of what we will be doing to attain price, exchange rate, and financial system stability.”
“That aspect of my speech was fully expected by many analysts and economic commentators. But to the surprise of many persons, I also devoted a significant part of that speech to also outline my vision for Development Banking.”
Emefiele reiterated that such surprise emanated from the fact that for quite some time, the dominant school of thought regarding central banking was that focusing on low inflation would eventually lead to greater growth, employment generation, and poverty reduction.
But given the socio-economic environment in which Nigeria operates, an annual addition of 1.8 million Nigerians to the labour pool, it will not make sense for the Central Bank to sit idly by and concentrate only on price and financial system stability.
“I believe that additional measures are required towards identifying productive sectors of the economy and channelling credit towards these sectors, while imposing proper monitoring and performance measures in order to ensure that the goals of increased employment, inclusive growth, and poverty reduction are attained.” He said.
He said that the establishment of the bank cannot be at a better time than now when all efforts are geared towards diversifying the nation’s economic base from an import oriented to an economy build on import substitution.
He said that CBN will join other existing DMBs, and Development Banks in channelling the badly needed funding of the priority sectors of our economy at concessionary pricing.
According to him, “Nigeria is gradually realizing her dream of becoming one of the 20 largest economies in the World by the year 2020.”
“We are now ranked as the 26th largest economy in the world, with our activities getting much more intertwined with occurrences in the global economy.”