Nigeria: Why Central Bank Adopted Interventionist Strategy – Emefiele

Amidst debates over the role of the Central Bank of Nigeria, CBN, in the nation’s economic policy and management actions, the apex bank’s governor, Godwin Emefiele, has said the outcomes of its various intervention platforms have justified the policy thrusts.

Speaking at the opening ceremony of the 32nd seminar for Finance Correspondents and Business Editors, in Akure, Ondo State, yesterday, Emefiele stated: “Being a developing economy, our approach to monetary policy must incorporate context. We do this by innovating around the use of available instruments. We understand that monetary policy must coordinate well with fiscal policy towards addressing the numerous developmental challenges our nation faces. Fortunately, the enabling statute envisages this and empowers us to intervene where and when necessary.”

Some critics have pointed out that the various interventions of CBN across sectors of the economy with provision of funding windows amounted to dabbling into the functions of other government agencies.

Emefiele added: “Under my watch, the bank has done this through various development finance initiatives. And with the benefit of hindsight now, we can safely say that the outcomes have so far justified our approach.

“Let me also remind us of the commitment I made while unveiling my vision for the CBN. It is on record that I had pledged to build a Central Bank that is professional, apolitical and people-focused.

“My mission was and still is, to bequeath a Central Bank that focuses on building a resilient financial system that can serve the growth and development needs of our beloved country, Nigeria.

“For us, the CBN was to act as a financial catalyst by targeting strategic sectors that could create jobs on a mass scale and reduce the country’s import bills.

“To solve the immediate and long-term economic challenges of the country, we needed to create an enabling environment with appropriate incentives to empower innovative entrepreneurs to drive growth and development.”


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