CBN And The New Policy Direction

A new monetary policy for Nigeria may as
well be on the way following comments
made by the new Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele. In a 10-point agenda presented on his assumption of office, Emefiele promised to stabilise the financial system of the Nigerian economy.
Mr. Emefiele said at a World Press Conference shortly after assumption of office that his tenure would among others, create a people-oriented Central Bank of Nigeria that would ensure financial system stability, among others.
Among the policy changes are the proposal to encourage small-scale borrowing without collaterals as well as the removal of deductions from bank deposits. These, among other policy changes, are capable of returning some kind of human face to the nation’s banking practice which hitherto tended to leave out some people.
The Tide joins other well-meaning persons and corporate bodies across the country to welcome on board, the new CBN helmsman to an enviable, but critical position that demands so much experience, patriotism and ingenuity. Though the job may be quite demanding, tempting and enormous, Nigerians and the government in particular expect so much from him.
It’s against this backdrop that we think that Emefiele will need to resolve to do the right thing at all times to all classes and manner of people in the discharge of his official duties. As the arrow head of the apex bank, he will need to distinguish himself for posterity.
The Tide appreciates the fact that though his job may not be an easy task, largely because of the changing face of the economy and inter-play of world politics and economic variables, where a lot of ingenuity will be required, Emefiele must better the record of his immediate predecessor.
Even as the CBN embarks on cashless policy across the federation, the interplay of global economies should bring out the best from him. The experiences he has garnered over the years in the banking industry will come to play. He must remain focused and resist the temptation to allow the banks endanger the economy.
His vast experience in commercial banking, especially at the  Zenith Bank, where he rose to the pinnacle,  may have equipped him for this job, but recent developments have shown that this job needs more than experiences and promises, but a heart for the country and its poor masses.
However, a lot of care is required to produce the desired growth of the nation’s economy and raise it to the next level. Efforts should be tailored to enthrone professionalism, expertise and excellence and avoid the pitfalls of the past, even the collapse of banks.
On the proposal to encourage collateral-free loans for Small and Medium Scale Enterprises (SMEs), the inherent dangers, must not be over looked. The Tide believes that if thoroughly handled, this will open windows of opportunities that will have positive and multiplier effects on the nation’s micro-economies.
Similarly, the removal of deductions from bank deposits will, no doubt, give a new meaning to the banking industry and attract more money into the system. It will avoid loses incurred by people who hitherto adopted the traditional and unorthodox ways of saving money because of the feeling that the banks are exploitative.
Emefiele’s proposals to reform the banking sector include models that had worked in other economies, particularly, among the Asian Tigers, and we earnestly believe that it can also work in Nigeria if and only if certain elements within the system will not sabotage the idea.
While we wish him the best during his stewardship, we urge all well-meaning persons, especially  stakeholders in the economy to collaborate and assist him to take Nigeria’s economy to the next level through a very proactive and people sensitive application of the services of the central bank.