The Governor of Central
Bank of Nigeria (CBN), Mr Godwin Emefiele, has assured Nigerians that the apex bank would focus on gradual reduction in interest rates under his leadership.
Emefiele gave the assurance at a news conference to outline his policy focus as the new CBN Governor in Abuja.
The Tide source reports that Emefiele who assumed office last Tuesday is the 11th CBN Governor. He replaced the former Governor, Malam Sanusi Lamido Sanusi, who was suspended from office by the president before the expiration of his tenure.
He said“We shall pursue a gradual reduction in interest rates. “A comparison of selected macro-economic aggregates from some emerging market countries, including South Africa, Brazil, India, China, Turkey and Malaysia indicate that Nigeria has one of the highest Treasury Bill rates.
“Such high rates create preserved incentives for commercial banks to simply buy virtually risk-free government bonds rather than lend to real sector,’’ he said .
He said that to enhance financial access and reduce the cost of borrowing credit, there was the need to pursue policies targeted at making Nigeria’s Treasury Bill rate more comparative to other emerging markets.
Emefiele said that while reduction in both deposit rates would encourage investment attitude in savers, a reduction in lending rates would make credit cheaper for potential investors.
“The bank will also begin to include unemployment rates as one of the key variables considered for its monetary policy decisions.
“In the interim, we will continue to maintain a monetary policy stance, reflecting the liquidity conditions in the economy as well as the potential fiscal expansion in the run-up to the 2015 general elections,’’ he said.
On the exchange rate policy, he said the key goal would be to maintain exchange rate stability in view of the high import dependent nature of the economy and the significant exchange rate it passed through in recent years.
According to him, a systematic depreciation of the Naira would literarily translate to considerable inflationary pressure with attendant effect on macro-economic stability.
“Therefore, under my leadership, the bank will continue to focus on maintaining exchange rate stability and preserve the value of the domestic currency.
“We will sustain the managed float regime in the management of the exchange rate as this will allow the bank to intervene when necessary to offset pressure on the exchange rate.
“To support this strategy, we will strive to build-up and maintain a healthy external reserve position and ensure external balance,’’ Emefiele said.
The new CBN governor explained that there was no doubt that reducing the interest rate and maintaining the exchange rate was a daunting twin goal.
“In this pursuit, the bank will work with all stakeholders to device measures to ensure the goals are achieved.”
On Financial System Stability, he said the bank would continue to sustain the effective management of the potential threats and avoid systemic crisis.
“The core of my vision is to effectively manage potential threats to financial stability and create a strong governance regime that is conducive for financial intermediation, innovative finance and inclusiveness.
“In this regard, we hope to anchor on two pillars of management factors that create liquidity shocks and zero tolerance on practice that undermine the health of financial institutions,’’ he said.
To achieve the goal, Emefiele said the bank would work with stakeholders to aggressively shore up the reserve and also engage both the fiscal and political authorities.
He assured Nigerians of enhanced banking supervisory purview over the banking system and strengthening of risk-based supervision mechanism to ensure overall health and banking system stability.
Expert Harps On Quality Building Materials
A real estate consultant in Port Harcourt, the Rivers State capital, Dr Derefa Fiberesima, has charged builders in Nigeria to come’ up with buildings that would stand the test of time, using quality building materials.
Fiberesima gave the charge in a chat with The Tide, yesterday in Port Harcourt.
He noted that the use of quality building materials would not only ensure the integrity of the building, but that materials suitable for the tropical weather conditions in the country would also be chosen.
Fiberesima observed that the buildings put up by the colonialists were still standing strong, saying: even stronger than new buildings erected in present day Nigeria’’.
He lamented that the quality of building materials used in the present day Nigeria was not suitable for the Nigerian weather condition.
He explained that the consequences of using substandard building material were dire and charged the Lawmakers need to accelerate the passage of the enabling Act for the enforcement of the National Building Code to adequately address building collapse crises in the built industry in the nation.
Fiberesima cited the example of corrugated iron roofing sheets widely used in roofing in Nigeria as one that gets easily rusted due to a acid rain and heavy sunshine especially in Rivers State adding that the heavy noise due to rain dropping on it could also be very disturbing to occupants of the building.
He also pointed out that there were health implications when asbestos building materials are used, which he lamented was not widely known to Nigerians.
He enjoined the government to take a look at the housing policies of other climes and articulate in Nigeria’s housing policies.
By: Tonye Nria-Dappa
FMDQ Committed To Tackling Housing Deficit –Onadele
The FMDQ Securities Exchange (FMDQ) Plc has said it remains committed to tackling the housing infrastructural deficit facing Nigeria through mobilisation of funds from the capital market.
Its Chief Executive Officer, Bola Onadele, disclosed this during the Capital Market Correspondents Assoctaion of Nigeria (CAMCAN) 2019 annual workshop in Lagos at the weekend.
Speaking on the theme: “Bridging the infrastructure gap in Nigeria: The Capital Market Option”, Onadele stated that infrastructure is central to the development of the economy and pointed out that FMDQ is poised to providing workable means of housing provision in the country,amongst other programmes to address infrastructural gap in Nigeria.
Onadele who was represented by Associate Executive Director, Corporate Development, FMDQ, Kaodi Ugoji, noted that the Exchange had set up a housing development project team to work directly with the office of the Vice president.
Onadele further added that the Exchange has been working with stakeholders and government to develop products that will drive the capital market and the Nigerian economy in the last four years.
“Sukuk bond has been a success no doubt but there is a need to expand sukuk bond which the Federal Government introduced. Infrastructure is one thing we need to shore up to achieve our goal as a country.
He gave assurance that the Exchange’s holding company would bring efficiency to help in the development of infrastructures.
“We will continue to innovate ways as well as blueprint to drive development in the capital market and the economy at large”, he said.
Staff Housing Loan Boss Cautions Public Servants Against Corruption
The former Executive Secretary, Federal Government Staff Housing Loans Board, Dr Hannatu Adamu Fika, has called on public servants in the country to shun corruption and contribute to making Nigeria great.
Fika made the call in an interview with newsmen during a dinner party organise in her honour to celebrate her retirement in Abuja.
She said that challenges in life were normal but one needs to be upright in carrying out his or her responsibility as a pubic or civil servant.
“When you build a house for a public servant, you have added value to his or her life.
“I want to call on public servants to be transparent and shun corruption in the course of their work for the development of the country.
“However, I will continue to urge the staff I have worked with to continue to follow the line of doing the right thing so that we can have a corrupt free public service in Nigeria.
“Those in the Housing Loan section should not relent to touch true lives of pubic servant in the area of provision of housing.
“I have exited but am not tired; I am moving into another stage where the Centre for Leadership and Economy Development, an affiliate with UN have given me the Chair Person of their governing board.
“I am now going to concentrate on issues of women and youths development, “ she said.
However, Fika said she would continue to pray that the Federal Integrated Staff Housing Programme known as FISH grows from strength to strength.
“So that civil servants who are hard working but their salaries cannot take then home would be able to benefit through that system so that they can have their own homes”.
Also speaking, the Permanent Secretary in charge of Niger Delta Ministry Ms Didi Walson-Jack, said Fika is intelligent, willing to advice and always on top of her subject matter.
“She has created impact in the public service through provision of housing for public servants and other wonderful things she did to help them,” she said.
Our correspondent reports that the occasion attracted some former permanent Secretaries, Heads of Civil Service of the Federation, FG Staff Housing Loans and many friends and well wishers.
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