The Central Bank of Nigeria has emphasized the need to diversify Nigeria’s economy away from mono-product oil-led economy and work towards building a broad-based and well diversified economy that guarantees overall macroeconomic stability.
CBN Governor, Godwin Emefiele who gave the indication at a seminar organised for Finance Correspondents and Business Editors in Abuja, said the task ahead required out of the box thinking that would drive financial inclusion, Agriculture, SME growth and facilitate cross border trade as well as FX exchanges.
Represented by the CBN Director of Corporate Communications, Osita. Nwanusiobi, the Apex Bank Governor underscored the need to work towards creating an economy that would enable Nigerians feed themselves, create jobs for the teeming youths and improve the standard of living of the citizenry.
Emefiele who recalled that as the world was gradually adjusting to the exit of shocks brought about by the impact of Covid 19 pandemic, added that the economic sanctions against Russia have further worsened the supply-chain disruptions and trade dislocations across the globe.
This he noted had triggered increases in commodities, energy as well food prices even as inflationary pressures persist.
“There is no gain saying that since 2019, the world has been facing severe shocks, propelled by the Covid 19 pandemic and the Russian-Ukraine war that have continued to threaten global growth and overall macroeconomic stability.
‘thus, underscoring the need to diversify our economy to ensure that unanticipated negative shocks such as this does not undermine our food security and self-sufficiency”.
Admitting that diversification of Nigeria’s economy is the only viable way to survive current harsh global realities, Emefiele called on all Nigerians to play their part in supporting efforts aimed at diversifying to non-oil sectors of the economy.
“As we work to deepen this policy agenda that has received tremendous support from Mr. President, I urge you to play your role in supporting efforts aimed at diversifying the economy”.
He further insisted on an urgent need for a conscientious effort to diversify to other non-oil sectors.
According to him, “Nigeria has largely depended on the oil sector for revenue generation over the past four decades and the sustained decline in crude oil production has continued to negatively undermine the performance of the economy.
“With our population growing by over 3 percent per annum over the past seven years, against a less than steady growth in output since 2019, expanding the production and industrial capacity of the economy must be given special attention to ensure overall macroeconomic stability.
Emefiele enumerated CBN’s several interventions and efforts targeted at diversifying the economy away from largely oil-based.
These include Anchor Borrowers’ Programme(ABP); The Commercial Agriculture Credit Scheme (CACS); 100 for 100 Policy on Production and Productivity (PPP); the RT200 FX initiative; the e-naira as well as support for MSMEs, Manufacturing and the Digital innovation and entrepreneurship sector.
“We have supported non-oil sectors such as agriculture, manufacturing, health care, education, power and aviation and other allied economic value chains” he said.
The theme of the seminar “Policy Options for Economic Diversification: Thinking Outside the Crude Oil-Box” seeks to change the narrative of over dependence on oil in Nigeria.
“This theme is not only appropriate but quite timely in our quest and resolve to change the narratives of depending on a mono-product oil-led economy, towards building a broad-based and well diversified economy that guarantees overall macroeconomic stability.”
