Smooth Implementation Of Emefiele’s Ideas Will Drive Investment Growth

Arize-Nwobu-&-Ogbonna-UkukuFinancial analysts On Monday stressed the need for a smooth implementation of the ideas of the new governor of the Central Bank of Nigeria, Mr Godwin Emefiele, for the achievement of needed investment growth. 

On Channels Television’s programme, Business Morning, the Country Representative International Institute for Investment promotion, Mr Ogbonna Ukuku and a financial market analyst, Mr Arinze Nwobu commended the new governor’s monetary policy stance.

“All hands must be on deck to ensure a successful implementation of the policies,” they said.

According to them, the money market, particularly the capital market, has a role to play in supporting development finance by keeping in touch with Small and Medium Enterprises, help them grow their businesses and encourage them to list on the Stock Exchange.

They further stressed that the physical point where the policies would be implemented must be ready to carry out the ideas.

Mr Ukuku said that change expected would be a gradual one, stressing the need for the policies to help ensure adequate financing of investments in some sectors of the economy that had not been explored. He cited the solid mineral exploration as one of the sectors that had not been explored.

“The apex bank should also look at how development finance institutions in Nigeria will be strengthened so that they will be able to fund the industries that have been lying fallow. There should be an effort to strike a balance in the trade imbalance that exist between Nigeria and other countries.  More of what is done at the physical end determines the victory that you get when you are running an economy,” he said.

Mr Emefiele had said that there would be a gradual interest rate drop.

But Mr Nwobu said he had to be strategic about the plan to drop the interest rate as it would have effect in the money market.

CBN Autonomy Debate: CIBN Lacks Resources For Banks’ Supervision – Bank Examiner

A former Bank Examiner, Bandele Olusegun on Wednesday faulted plans to cede banks’ supervisory function to the Chartered Institute of Bankers of Nigeria (CIBN).

Mr Olusegun, who was a guest on Channels Television’s breakfast programme, Sunrise Daily, said the CIBN does not have the resources to conduct examinations and supervision for banks in Nigeria.

“The CIBN cannot do it because of the fact that they wouldn’t have the resources to carry it out,” he said.

The former bank examiner said CIBN’s major source of revenue is from subscription from its members and that it takes an average of three months to conduct a proper bank examination which cost a lot of money the institute cannot afford.

The Chairman of the House Committee on Banking and Currency, Jones Onyereri gave hint of the plans of the National Assembly to cede bank supervision to the CIBN during the special ACIB induction for the pioneering graduates of the Chartered Bank MBA of the institute.

Mr Onyereri said the move would be the main focus of the lawmakers this year, to ensure that it excises the supervisory role from CBN.

The lawmakers had initiated moves to amend CBN’s Act that would have compromised the apex bank’s autonomy, but the plan was stalled due to stiff opposition from stakeholders.

The amendment, among other things, sought to remove the bank’s governor, deputy governors and executive directors from the bank’s board, provides for a former governor of CBN to chair the board, while also stripping the board the power of consideration and approval of its yearly budget.

CBN Act Amendment: Look Beyond Sanusi, Analyst Urges National Assembly

A financial consultant, Eddie Osarenkhoe has cautioned the National Assembly not to allow their grouse with the governor of the Central Bank of Nigeria (CBN), Lamido Sanusi to influence their judgements in seeking the amendment of the act establishing the apex bank.

Speaking on Wednesday as a guest on Channels Television’s breakfast programme, Sunrise Daily, Mr Osarenkhoe said rather than act on the spur of the moment, the National Assembly should consider and seek to improve the systems and processes in the CBN.

“The same CBN have been there all along and they (the National Assembly) never raised the eyebrow they’ve raised. Maybe it is because there was change in the headship and he (Mr Sanusi) came out with some strong policies which actually shook the economy that is why there was this uproar,” he said.

Two bills – one before the Senate and the other in the House of Representatives – seek to amend the CBN Act Cap C4, Laws of the Federation of Nigeria, 2004, to compel the CBN to submit its annual budget to the National Assembly and for matters connected thereto.

While the Senate’s bill was published in the National Assembly Journal Volume 8, number 54 of April 13, 2012, and registered as Senate Bill 75, the House of Reps’ bill seeks to amend Section 6(2) of the CBN Act (2007) to remove the CBN governor as chairman of the board and exclude the deputy governors and directors as members of the board. It was published in the same journal four days after – Volume 8, number 62, dated April 17, 2012, and dubbed HB.12.03.276.

Both bills seek to divest the board of the CBN of its powers to appropriate and approve the annual budgetary estimates of the bank, contrary to Section 6 (3) (a) of the CBN Act 2007 which stipulates that the board shall be responsible for the consideration and approval of the annual budget of the bank.

2013: Analysts Predict Positive Economic Outlook For Nigeria

Economic analysts have predicted that the Nigerian economy will maintain positive macro-economic indices in 2013.

Speaking on Channels Television’s weekend programme, Sunrise, the analysts including the Deputy Governor (Operations) of the Central Bank of Nigeria (CBN), Tunde Lemo; an Economist, Henry Boyo; and a Bank Executive, Foluke Aboderin, agreed that Nigeria would see higher growth, higher equity valuations, robust reserves accretion, firm oil prices and slightly lower inflation next year.

However, the analysts disagreed on some government policies that have impeded the growth of the Nigerian economy such as the interest rates, cash liquidity and other economic growth indicators.

Mr Lemo said statistics from the CBN showed Nigeria’s foreign reserves which has moved in tandem with higher oil prices up to 34.9 per cent, has reached $44.340 billion.

Watch the complete interview with the three analysts in the five parts video below: