CBN moves to protect economy over falling oil prices

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Central Bank of Nigeria, CBN is set to unveil policy measures that would protect the economy from the recent decline in price of crude oil.CBN Governor, Mr Godwin Emefiele disclosed this in Lagos at the investiture of the Chartered Institute of Bankers of Nigeria, CIBN.

He said, “I am aware that price of crude oil is dropping and that presents some form of vulnerability to Nigeria. I can assure you that the fiscal authorities and the monetary authorities are taking actions to ensure that we take steps that will help Nigeria to withstand the shocks that we see. A number of actions will be unveiled, in fact some have already been unveiled, and more will be unveiled by both the monetary and fiscal authorities to ensure that Nigeria continues to remain strong, healthy to be able to support growth and development in Nigeria.”

Speaking on the theme of the investiture, “Making Nigeria a major destination for foreign direct investment”, Emefiele said that the CBN in order to encourage both local and foreign investments, is introducing a broad spectrum of financial instruments to boost sector-specific enterprise areas in agriculture, SMEs, manufacturing, and oil and gas.”

He noted the flow of FDI into Nigeria has changed in the last decade unlike the situation in the 1990s when the average FDI inflow was $1.5 billion per annum. This he said is due to “difficult, but necessary, structural and macroeconomic reforms, which have been implemented in the country since the return to democratic governance in 1999.

“It is not surprising therefore that Nigeria has become a leading destination for FDI in Africa. In fact the country has received direct investment of over $67 billion since the return to democratic governance,” he said. – Condensed from Vanguard