10 Things Emefiele Plans To Do As CBN Gov Unveils 5-Year Vision

On Monday, the Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, presented the Monetary Policy roadmap for 2019-2024, his second term in office at a media briefing at the bank’s headquarters in Abuja.

Emefiele, who used the occasion to highlight some of his major achievements in the last five years, unfolded his plans for the next five years.  

THE WHISTLER brings you ten major   things that are top priority to Emefiele as the CBN governor over the next 5 years:

1.  Macroeconomic Stability

In the next five years Emefiele plans to improve GDP growth and greater private sector investment by leveraging monetary policy tools in supporting a low inflation environment, while seeking to maintain stability in our exchange rate.

This, according to him will help lower interest rates charged by banks to businesses thereby facilitating improved access to credit, and a corresponding growth in output and employment.

2. Exchange Rate Stability

 The CBN Boss promises to support measures that will increase and diversify Nigeria’s exports base and help to improve the country’s reserves. He also intends to implement N500bn facility aimed at supporting the growth of Nigeria’s non-oil exports and its earnings.

Emefiele disclosed that under his second tenure, the CBN will launch a Trade Monitoring System (TRMS) precisely in October 2019 to reduce the length of time required to process export documents from 1 week to 1 day.

These measures while supporting improved inflows into the country will help to stabilize the exchange rate and build external reserves.

3. Financial System Stability

 In the next five years, Emefiele intends to pursue a program of recapitalizing the banking Industry so as to position Nigerian banks among the top 500 in the world.

He also plans to develop a robust mechanism that will help protect against loss of data, fraud and cyber incursions in banks and financial institutions.

4. Robust Payment System Infrastructure

 Over the next five years, the CBN under the watch of Emefiele plans to improve the speed and efficiency of payments channels, as well as ensure that digital channels such as the cashless initiative, USSD, mobile banking, agent networks and payments service banks are safe and secure.

 This according to the CBN boss   will help build confidence in the nation’s payment system.

5. Targeted Development Finance

The second tenure of Emefiele intends to boost productivity growth through the provision of improved seedlings, as well as access to finance for rural farmers in the agricultural sector, across 10 different commodities namely: Rice, Maize, Cassava, Cocoa, Tomato, Cotton, Oil-palm, Poultry, Fish, and Livestock/Dairy.

In the next 5years, this will, however, create over 10 million if efforts are made to expand cultivation and processing of these items in the country.

 This measure is also believed to improve Nigeria’s annual non-oil exports receipts from $2bn in 2018 to $12bn by 2023.

6.  Financial Inclusion

Over the next five years, through initiatives and policy measures such as the Shared Agent Network (SANEF) and the payment service banks, the CBN  to ensure that 95 percent of eligible Nigerians have access to financial services by 2024.

7. Access to Credit

  MSMEs today constitute over 90 percent of businesses in the country.

Through the national collateral registry, over N400 billion worth of movable assets have been registered by MSMEs in the registry but Emefiele in the next 3 years intend to triple this number to  help improve access to credit for farmers and MSMEs, and  also support the growth of their respective businesses.

8. Unique Identification

In order to ease the constraint poor identification has on the availability of credit to prospective banking customers, the CBN in the next 5 years will expand the enrollment of 38 million unique banking customers to 100 million.   This effort will improve the comfort level on banks in providing services to an expanded customer base. It will also aid in the development of a credit profile for banking customers.

9. Lending to MSMEs

   The second term of Emefiele promises to ensure improved access to credit for MSMEs in rural communities, which will help stimulate improved economic activities.

10. Mortgage Lending

The CBN In its effort to support the growth of Nigeria’s real estate industry plans to work in developing a framework that will enable banks to securitize mortgage loans, which can then be sold in the capital markets as a lot of equity is currently tied down in mortgage assets.

It will also reduce the high cost of obtaining mortgages for banking customers.