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Tuesday,
May 19, 2020 / 06:28 PM / by CBN / Header Image Credit: Bloomberg
As
Nigeria continues the process of full reopening of its economy due to the
lockdown over the Corona Virus (COVID-19), the Governor, Central Bank of
Nigeria (CBN), Mr. Godwin Emefiele, has urged industrial conglomerates
operating in the country to support efforts aimed at growing the Nigerian
economy and returning it to its glory days.
The
Governor also warned that the CBN will not support the importation of items
that can be produced in Nigeria because the Bank could not spend its foreign
exchange reserves on what would not boost the economy and generate jobs for
Nigerians.
Speaking
at the weekend during a virtual meeting with Chief Executive Officers (CEOs) of
conglomerates in Nigeria, Mr. Emefiele said the CBN, in line with President
Muhammadu Buhari's desire, was determined to return the Nigerian economy to the
period when the manufacturing and agricultural sectors formed the base of the
economy.
The
Governor, while acknowledging the challenge of low crude oil prices to major
economies of the world, expressed confidence that the price of crude will not
remain at low levels for a long period. While also emphasizing that the low
crude oil prices were surmountable, he declared that Nigeria's foreign reserves
of about $37Billion remained robust to support the economy.
He
therefore enjoined the conglomerates to key into the current administration's
drive of diversifying the base of the Nigerian economy by taking advantage of
its large population to market their products, which he insisted could be
produced in Nigeria and exported to the rest of the world.
He
also pledged the Bank's willingness to provide foreign exchange to companies
that required such for raw materials and machinery that could not be obtained
in Nigeria.
With the African Continental Free Trade Area (AfCTFA) now billed to commence in January 2021, Mr. Emefiele said Nigeria provided the companies with immense opportunities to produce their items and make huge profits through the Nigerian market, which he noted was large enough to support their respective businesses.
Stressing
further on the need to prioritise the Nigerian market, the CBN Governor assured
the companies that the Bank will collaborate with the relevant government
agencies to help nip smuggling in the bud, while also promising to protect
their businesses to ensure they succeed in Nigeria.
Similarly,
he assured the CEOs of the Bank's willingness to collaborate with other fiscal
authorities to improve on their ease of doing business in Nigeria, with a view
to simplifying their import and export processes.
On
the issue of Direct Foreign Investments (FDIs), Mr. Emefiele said the Bank was
not opposed to the conglomerates seeking alternative but legitimate sources of
foreign exchange to boost their businesses, just as he said the CBN would not
hinder the companies from repatriating their dividends.
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