BUSINESS
Going Forward with CBN, Emefiele’s 5-Year Roadmap
By Tony Obiechina, Abuja
The Governor of the Central Bank of Nigeria (CBN) Mr Godwin Emefiele, on Monday 24th July, 2019 unfolded the policy direction of his new five-year tenure which will terminate in 2024.
Addressing a World Press Conference at the CBN corporate headquarters in Abuja, the governor promised to facilitate access to financial services to 95 per cent eligible Nigerians as well as “continue to work to safeguard the stability of our financial system, while supporting the development of a payment system infrastructure that will improve access to credit for all eligible Nigerians”.
“Over the next five years, this will be the task for the Central Bank of Nigeria under my leadership, and we intend to do our very best to achieve these objectives”, he had assured.
Although Emefiele acknowledged that much was still left to be achieved from a similar agenda set in July 5, 2014, when he was first appointed, he said he was confident the bank will meet the expectations of Nigerians in the next five years.
Reviewing the achievements and challenges of the CBN in his first tenure, the governor pointed out that “with increased consultation and cooperation with the fiscal authorities and other interest groups, the agenda will be realised”.
In driving this vision, Emefiele expects that the bank under his management for the next five years, will work closely with the fiscal authorities to target a double digit growth; bring down inflation to single digit; and accelerate the rate of employment”.
“Put succinctly, our priorities at the CBN over the next five years are the following; First, preserve domestic macroeconomic and financial stability; Second, foster the development of a robust payments system infrastructure that will increase access to finance for all Nigerians thereby raising the financial inclusion rate in the country; Third, continue to work with the
Deposit Money Banks to improve access to credit for not only small holder farmers and MSMEs but also consumer credit and mortgage facilities for bank customers. Our intervention support shall also be extended to our youth population who possess entrepreneurship skills in the creative industry,” he had said.
Even as the governor promised to encourage the Deposit Money Banks to direct more focus in supporting the education sector, grow the country’s external reserves, and support efforts at diversifying the economy through CBN intervention programmes in the agriculture and manufacturing sectors, the apex bank may have concluded plans to raise the banks’ minimum capital base from the present N25 billion to over N200 billion.
“In the next five years, we intend to pursue a programme of recapitalising the banking Industry to position Nigerian banks among the top 500 in the world.
“Banks will therefore be required to maintain higher levels of capital, as well as liquid assets in order to reduce the impact of an economic crisis on the financial system,” he said.
On macro-economic stability, he said over the next five years, emphasis would be on supporting improved gross domestics product (GDP) growth and greater private sector investment.
According to him, the CBN intends to leverage monetary policy tools in supporting a low inflation environment, while seeking to maintain stability in our exchange rate.
He said decisions by the Monetary Policy Committee on inflation and interest rates will be dependent on insights generated from data on key economic variables.
He also said the CBN would also strive to continue to sustain a positive interest rate regime and that monetary policy measures, will be geared towards containing inflationary pressure and supporting improved productivity in the agricultural and manufacturing sectors.
To bring down the cost of food items, which have considerable weight in the Consumer Price Index basket, Mr Emefiele said the bank will work with other interest groups towards that objective.
“Our ultimate objective is to anchor the public’s inflation expectation at single digits in the medium to long run. We believe a low and stable inflationary environment is essential to the growth of our economy because it will help support long term planning by individuals and businesses,” he assured.
On Exchange Rate Stability, Mr Emefiele said the bank will continue to operate a managed float exchange rate regime, to reduce the impact the continuous volatility in the exchange rate could have on the country’s economy.
He the CBN will support measures to increase and diversify Nigeria’s exports base and ultimately help in shoring up the country’s foreign reserves.
Nigeria, he said, remains committed to a free trade regime that is mutually beneficial; but, particularly aimed at supporting our domestic industries and creating jobs on a mass scale for Nigerians.
Consequently, he said, the CBN intends to aggressively implement its N500 billion financial support facility to boost the growth of the non-oil exports and improve non-oil export earnings.
To achieve Financial System Stability, Mr Emefiele said a resilient and stable financial system was imperative for continued growth of the country’s economy given the intermediation role of financial institutions, to support the needs of individuals and businesses.
“In the next five years, we intend to pursue a programme of recapitalising the banking Industry to position Nigerian banks among the top 500 in the world.
“Banks will therefore be required to maintain higher levels of capital, as well as liquid assets in order to reduce the impact of an economic crisis on the financial system,” he said.
Reacting to the development. the Chairman, Charteted Institute of Bankers (CIBN), Abuja Chapter, Prof Uche Uwsleke said Ememefie’s five year policy thrust “is a good development with a lot of positive impact on the economy”.
In an interview with Daily Asset on Tuesday, Uwaleke, professor of Capital Market said, “The recapitalization of banks will strengthen financial system stability and put our banks in a stronger position to finance big projects needed for development as well as play in the global scene”.
“The planned introduction of a Trade monitoring system that reduces the length of time it takes to process export documents from one week to one day will surely boost exports.
“Also commendable is the plan to scale up the Anchor Borrower Programme and target for massive funding support 10 commodities that consume a lot of foreign exchange to import.
“This will help conserve Forex, grow external reserves, reduce food prices and possibly create job opportunities. The plan to build a robust payment infrastructure including through promoting payment service banks, shared agent networks, mobile money will go a long way in helping to achieve the target of 95 percent financial inclusion by the year 2024.
“Similarly, the boost in the Collateral Registry where over N400 billion worth of assets have been registered as well as the NISRAL microfinance bank will no doubt improve access to finance by micro and small businesses.
“The major risk I see in the pursuit of price and monetary stability which is the core function of the CBN is the volatility in crude oil price given our dependence on the sector. The CBN is therefore advised to have a plan B in its five year plan.
“It is also vital to get the cooperation of the fiscal authorities especially when it comes to the task of achieving double digit growth because on this very score, the CBN cannot clap with one hand”, he argued.
On capitalization, the university don’t however advised the CBN to raise the banks’ capital base to N100 billion, up from N25 billion.
“The N25 billion is already eroded when you look at our exchange rate. It is better to have 10 healthy banks than 20 that will be giving CBN headache. The tier two banks are also the most exposed banks to NPLs. The big five, are not giving CBN much problem like the others”, he argued.
“Bigger banks can easily bankroll larger businesses. So, if we are one of the 500 banks in the world, we can play comfortably in the international league. Bigger banks have better corporate governance and monitoring by CBN is much easier. Fewer stronger banks will invest in the right technology to deliver better services”, Uwaleke further pointed out.
In his reaction, CIBN President, Dr Uche Olowu, said there was no need for panic among bankers as the Nigeria financial system remains stable stressing that the whole idea of recapitalisation was to continue to sustain that stability in order to expand the scope of banks to do bigger businesses.
Olowu however advised the boards of the banks to go back to the drawing board and restrategise ahead of the CBN’s impending reapitalisation, assuring that the system will take care of itself with adequate planning.
The Nigerian National Petroleum Company Limited has reduced the pump price of petrol at its retail outlets to N1,130 per litre in Lagos and N1,165 per litre in Abuja.
The new pricing reflects a N100 reduction from the previous N1,230 per litre in Lagos and a N95 decrease from N1,260 per litre in Abuja.
Checks showed that the revised price was being dispensed at several NNPC retail stations in Lagos, including outlets along Isheri Oshun Road, Apple Junction and Ago Palace Way.
Similarly, some stations operated by the national oil company in the Federal Capital Territory were selling petrol at N1,165 per litre, including outlets in Jabi, Lifecamp, Wuse Zone 5 and Wuse Zone 4.
The price adjustment follows a recent reduction in the ex-gantry price of petrol by the Dangote Refinery, which lowered its rate to N1,075 per litre amid easing global oil prices.
According to OilPrice.com, Brent crude prices recorded a sharp reversal on Tuesday, falling by nearly 27 per cent from the previous day’s high of $119 per barrel to about $87 per barrel.
Similarly, diesel is now priced at N1,430 per litre at the gantry, representing a N190 reduction from the earlier price of N1,620 per litre.
A total of six ships have arrived at Lekki, Tincan and Apapa ports in Lagos, waiting to discharge crude oil, bulk urea, aviation fuel and petrol.
The Nigerian Ports Authority (NPA) stated this in its publication, “Shipping Position”, on Wednesday in Lagos.
The document stated that 40 ships laden with petroleum products, food items and other goods were being expected in Apapa, Lekki and Tin-Can Island ports from March 11 to March 16.
The NPA added that the expected ships contain buckwheat, bitumen, empty containers, fresh fish, crude oil, bulk wheat, petrol, bulk clinker, bulk urea, aviation fuel, general cargo and containers of different goods.
20 other ships are at the ports discharging containers, petrol, bulk wheats, bulk sugar, bulk salt, bulk gypsum aviation fuel and bulk urea.
Director-General for Southern Africa, African Development Bank (AfDB), Dr. Kennedy Mbekeani, has called for stronger policy alignment and private capital mobilisation to unlock Africa’s trade potential under the African Continental Free Trade Area (AfCTA).
Mbekeani made the call while delivering a keynote address at the 2026 Africa Trade Conference in South Africa on Wednesday from Lagos.
The conference, organised by Access Bank, has the theme: “Turning Vision into Velocity: Building Africa’s Trade Ecosystem for Real-World Impact”.
According to him, Africa possesses the resources, institutions and capital needed to drive its development but must strengthen coordination and confidence in its own systems to accelerate economic growth and regional integration.
He noted that AfCTA provided a major opportunity to transform the continent into a single market capable of boosting production, consumption and trade among African countries.
“Africa has the resources, the financial institutions and the capital required for development. What we need is stronger coordination, improved policies and confidence in our own systems,” he said.
Mbekeani said the continent’s large population and vast natural resources placed it in a strong position to build one of the world’s biggest consumer markets if governments harmonised policies and created enabling environments for businesses.
According to him, Africa’s development challenge is not a lack of resources but the need to mobilise capital and channel it effectively into infrastructure and productive sectors.
“We must focus on mobilising private capital at a continental scale. The funds needed for Africa’s development already exist within the continent,” he said.
He urged African governments to deepen partnerships with the private sector in areas such as energy, transport, water and education to bridge the continent’s infrastructure deficit.
Mbekeani noted that successful public-private partnerships across several countries had shown that private investors could deliver critical infrastructure when supported by clear policies and effective regulation.
“We need governments to create enabling environments while the private sector participates actively in building the infrastructure that will support regional integration,” he said.
He also stressed the need for African institutions to shape the narrative about the continent’s investment climate, saying perceptions about risk in Africa were often exaggerated.
“Africa must begin to tell its own story. The perception of risk on the continent is sometimes higher than the reality,” Mbekeani said.
He added that stronger regional markets would reduce the continent’s exposure to global shocks and enable African countries to process more of their resources locally.
According to him, deeper economic integration will increase intra-African trade, strengthen supply chains and enhance the continent’s ability to withstand global disruptions.
Mbekeani said the AfCFTA represented a historic opportunity to build a truly integrated African market and urged governments, financial institutions and businesses to take concrete steps to turn the vision into reality.
The Chief Executive Officer of the Pan-African Payment and Settlement System (PAPSS), Mike Ogbalu, said high transaction costs and fragmented payment systems had long hindered trade within Africa.
Ogbalu noted that some of the world’s most expensive payment corridors existed in Africa, making cross-border transactions costly for businesses and individuals.
“It is ironic that the poorest people often pay the most to move money across borders. Some of the most expensive payment corridors in the world are in Africa,” he said.
He noted that PAPSS was created to address this challenge by enabling businesses and individuals to make cross-border payments in their local currencies across the continent.
Ogbalu explained that the platform allowed payments initiated in one African currency to be received in another within seconds, eliminating the need for third-party currencies and lengthy correspondent banking processes.
“A payment can originate in Nigeria in naira and arrive in Egypt in Egyptian pounds within seconds. That is the efficiency we are bringing to African trade,” he said.
According to him, the system guarantees that transactions are completed within 120 seconds, although most payments are currently processed in about 12 seconds.
He added that PAPSS had reduced the cost of cross-border payments by more than 98 per cent while ensuring transactions complied with global standards on anti-money laundering, sanctions screening and fraud management.
According to him, the platform currently operates in about 20 African countries with more than 170 participating commercial banks and fintech firms connected to the network.
“For many African entrepreneurs, their real market is not just their home country but the entire continent of over 1.4 billion people,” Ogbalu said.
He added that improving payment efficiency would help African businesses expand beyond national borders and unlock the full potential of intra-African trade under the AfCFTA.
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