6 important ways Nigeria’s apex bank is facilitating the country’s economic growth

Nigeria’s apex financial institution, the Central Bank of Nigeria held a tweet meet on Monday to educate and inform on the efforts the bank is making to grow the economy.

The online meet featured the Acting Director of Corporate Communications CBN, Isaac Okorafor who answered questions on a wide range of issues, policies, and actions taken by the bank and the economy at large. The tweet meet was moderated by a renowned Senior Economist with SPM Professionals, Paul Alaje.

Here are 6 important ways the Central Bank of Nigeria is helping to grow Nigeria’s economy

  1. Illegal and excessive deductions by commercial banks

Over the years, commercial banks in Nigeria have indulged in the practices of overcharging customers/depositors arbitrarily and excessively. They even go contrary to tariff stipulations and credit and monetary guidelines issued from time to time by the Central Bank of Nigeria.

  1. Dirty worn out 100 naira notes in circulation

There is a high circulation of dirty worn out 100 naira notes and a lot of Nigerians are complaining it. This seems to be a topic on social media almost every week and even in public transport.

  1. The key success factors of growth in 2017 and outlook on 2018

2017 was a great year for Nigeria after it exited recession which plagued its economy. This recession was seen as the worst economic situation to hit the economy in decades. A lot of businesses shut down while people lost their jobs. Some companies could no longer pay their staff due to the depreciation of the naira. But 2018 seems to be a great year for the country and a lot of Nigerians look forward to seeing what the government has to offer them this year.

 

  1. What the CBN is doing to increase employment in Nigeria.

Nigeria’s unemployment rate rose from 14.2% to 18.8% in 2017 and a lot of youths are still graduating from several tertiary institutions with little or no jobs for them. In order to reduce the cost of operation, several businesses had to cut the number of staff in their organizations. This also increased the unemployment rate in the country.

  1. How the CBN plans to sustain the successes recorded with the Anchor Borrowers Programme (ABP)?

Since the inception of the Anchors Borrowers Programme in 2015 by president Muhammadu Buhari, it has generated almost 3.5 million direct and indirect jobs. The CBN was able to achieve this through the disbursement of a cumulative sum of N55.526 billion.

  1. How long the Bank intends to continue building on the Forex Reserve?

Currently, Nigeria’s  external reserve stands at $41.8 billion and it is expected to go up, with the successful issuance of the $2.5 billion Eurobond offering. Following this growth, the CBN has continued to make interventions in the inter-bank sector of the Foreign Exchange market in order to help strengthen the naira.