Emefiele highlights opportunty for new Nigeria post COVID-19
In spite of the current Coronavirus tragedy across the world, Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, has explained how to turn the pains from the ongoing pandemic crisis into a better Nigeria.
The governor of Nigeria’s apex bank in a 27 pages document, obtained by The Daily Times on Tuesday explained the type of Nigeria we must all aspire to build.
Emefiele in the statement titled, ‘Turning the COVID-19 tragedy into an opportunity for a new Nigeria’, said as a country, “we must envision and work toward a Nigeria with the cutting edge medical facilities to provide world-class care to the sick and vulnerable, which would enable her universities and research institutions to provide the requisite education and training that is required to keep these ecosystems functioning sustainably and efficiently, and millions of Nigerians employed in meaningful and well-paying jobs.
To achieve this, he said, firstly Nigeria would require building a base of high-quality infrastructure including reliable power that can engender industrial activity; supporting both smallholder and large-scale agriculture production in select staple and cash crops.
The apex bank’s chief also listed the urgent requirement for creating an ecosystem of factories, storages, and logistics companies that move raw materials to factories and finished goods to markets and using our fiscal priorities to create a robust educational system that enables critical thinking and creativity which would better prepare children for the world of tomorrow.
Emefiele also believed that developing a healthcare system that is trusted to keep all Nigerians healthy, irrespective of the social class would propel Nigeria into a greater tomorrow.
Other ways in achieving a Nigeria for all, according to him, is by facilitating access to cheap and long term credit for Small Medium Enterprises (SMEs) and large companies; developing and strengthening pro-poor policies that bring financial services and security to the poor and the vulnerable and expediting the development of venture capitalists for nurturing new ideas and engendering Nigerian businesses to compete globally,
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The CBN governor also focused on three specific but critical areas for rejuvenating the Nigerian economy over a three-year horizon. The first of these three will be to creatively build a strong foundation for machineries production in Nigeria.
He said: “In manufacturing, for example, it is pertinent to note that Nigeria’s gross fixed capital formation is currently estimated at N24.55 trillion made up residential and non-residential properties, machinery and equipment, transport equipment, land improvement, research and development, and breeding stocks.
“Of this estimated value, machinery and equipment, which are the main inputs into economic production is currently valued at only N2.61 trillion. In order to pursue a substantial economic renewal, including replacement of at least 25 per cent of the existing machinery and equipment for enhanced local production, we estimate at least N662 billion worth of investments to acquire hi-tech machinery and equipment.
“Therefore, the CBN will consider an initial intervention of N500 billion over the medium term, specifically targeted at manufacturing firms to procure state-of-the-art machinery and equipment and automated manufacturing models that would fast-track local production and economic rejuvenation, as well as support increased patronage of locally processed products such as cement, steel, iron rods, and doors, amongst several other products.
“The recent private sector investments in cement production using enhanced technology and automated manufacturing models is a good example of the kind of economic renewal we will be pursuing in this phase. We will develop a thorough screening process and stringent criteria for equipment types that would qualify for funding under this phase.”
Secondly, the CBN governor pledged that “in order to boost job creation, household incomes and economic growth, we will be focusing our attention to bridging the housing deficit in the country, by facilitating government intervention in three critical areas: housing development, mortgage finance, and institutional capacity.
“We will pursue the creation of a fund that will target housing construction for developers that provide evidence of profiled off-takers with the financial capacity to repay.
The current identification framework in the banking sector using the bank verification number (BVN) will be used to verify the information provided by the off-takers before the developer can access the funds.
We will also be considering ways to assist the Mortgage Finance Sub-sector as well as build capacity at the State levels for their land administration agencies to process and issue land titles promptly, implement investment-friendly foreclosure laws and reduce the cost of land documentation, as this has remained a major inhibiting factor in the provision of affordable housing in the country.
“Over the next 3 years, we will also support the financing of environmentally friendly energy production, as this has tangential long-term health benefits.”
Drawing from the ongoing trend whereby nations are imposing prohibition on their exports, the CBN governor said “India is in a position to ban exports because it is producing critical drugs and medical supplies that the rest of the world needs.
“It also has companies that are global champions and even making mergers and acquisitions in advanced nations. Why should this be out our reach,” he asked.
“We have the companies too; we have the manpower and some of the best brains in the world from America to Europe and from Asia to Africa are Nigerians; driving global innovations in fields.
“Nigerians are successful everywhere and are already one of the most sought-after immigrants groups in the United States, But now is the time to seize this opportunity and create an environment that empowers our people to thrive within their shores”, he said.
