Emefiele Happy With IMF Growth Projections For Nigeria, Says CBN Vindicated
- The governor of the Central Bank of Nigeria (CBN) says the IMF growth forecast for Nigeria has vindicated the bank
- Godwin Emefiele said the position of the IMF makes the CBN happy but that a lot of work needs to be
- He said rising inflation and poverty is a significant causes for concern for global economies
The Governor of the Central Bank of Nigeria, Godwin Emefiele, seems impressed with the growth forecast for Nigeria by the International Monetary Fund (IMF).
IMF retained its forecast for Nigeria at 3.2% for 2023 and dropped it slightly to 3.0% for 2024 from the 3.1 it initially put for the West African Country.
Source: Getty Images
CBN's actions endorsed by IMF
Emefiele revealed this on the sidelines of the World Bank and IMF Spring meetings in Washington DC, USA, on Friday, April 14, 2023, stating that retaining Nigeria’s growth rate at 3.2% for 2023 means IMF is endorsing the apex bank’s policies it had put in place in recent months to tackle the effects and fallouts from the global economic challenges caused by the war in Ukraine and the global financial crisis.
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Emefiele said the CBN is happy that in Africa, the growth levels in Nigeria and its assessment are still relatively good but below par. He said that the IMF would, among all the African countries, state that growth in Nigeria should be retained at 3.2%, making the CBN happy.
Emefiele said
‘‘But it also means that we are not going to remove our eyes on monetary policies, which is to focus extensively on how to moderate inflation, but at the same time, ensure that banking system stability remains resilient and then strong as it is right now’’.
He said that the growth rate forecast at the meeting means that a lot of work was done in 2022 and that growth is returning gradually to Nigeria’s economy but is still below par.
The apex bank chief said inflation continues to be a source of concern in Nigeria; though slowing down due to some measures by monetary authorities, it is still very high globally.
Vanguard reports that Emefiele said global inflation had been projected at 7 percent, which is still high.
Inflation and poverty are primary sources of worry
Emefiele said rising global poverty is a source of worry for global economies as about 700 million people are stuck in poverty.
‘‘Food insecurity has also risen tremendously to the extent that over 350 million people globally are hit by extreme food crises.
‘‘While monetary authorities are working to bring down inflation, they must also keep their eyes on banking systems’ stability through monitoring, supervision, and regulatory frameworks.
‘‘For the fiscal, of course, because of the limited fiscal space, the IMF insists that countries need to reduce their spending, but, in my case, I will say, well, if you want to spend, then raise revenue to be able to spend.
CBN's new announcement drives BVN database to 57 million, as more Nigerians rush to link accounts
Legit.ng earlier reported that new data reveals that the number of bank owners in Nigeria with Bank Verification Numbers (BVN) grew to 57 million as of April 9, 2023.
The information was disclosed in the new BVN registration data made available by the Nigeria Inter-Bank Settlement System (NIBSS).
The data, however, reveals that registration for new BVN has thawed since the beginning of 2023 despite the Central Bank of Nigeria's (CBN) announcement that it will shut down bank accounts not linked with BVN.
Source: Legit.ng
