The CBN governor seems to be off to a bright start as he has laid out his second tenure plans for Nigeria. Emiefele rolled out a 5-point agenda that the apex bank will pursue in the next five years to ensure Nigeria’s economy grows at a double-digit rate.
How’s Nigeria doing?
Nigeria’s economy grew by 2.0 per cent in the first quarter of 2019, that’s less than 2.4 per cent expansion in the previous period and below market expectations of 2.1 per cent. So even though a double-digit growth seems quite ambitious, it’s possible.
What’s slowing down the economy?
Internal Issues: Unemployment, Insecurity.
External Issues: Rising trade tension between the United States and China, the United States and Mexico, Brexit.
Volatility in the Crude Oil Market, remember Nigeria is still very dependent on Oil revenue.
So What’s the way forward?
- Diversify the economy. Yeah, we’d never stop hearing about this.
- Encourage banks to support the education sector. In the first quarter of 2019, the education sector received the least amount of loan (0.54%) from financial institutions.
- Improve access to credit for small and medium scale enterprises.
- Increase financial inclusion. As at the end of 2018, about 36% of Nigerians did not have access to financial services.
- Support youths with entrepreneurial skills
- Growing external reserves. As at May 2019, Nigeria’s total external reserve was $45billion, up from $44billion in April.
At the end, the only outcome we expect is…