The Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has stated that the Treasury Single Account (TSA) currently under probe by the Nigeria Senate will help make cash management easy for government. JOHN OBA reports.
Speaking during an advocacy workshop on the Economic Implications of recent CBN policies with the theme ‘understanding the Economic Implications of the new CBN monetary policies and the role of civil society in policy advocacy and economic development’ organised by the Coalition of Civil Society Groups (COSG) held at Chelsea hotel, Abuja.
Emefiele, who was represented by the Director of Finance and Marketing Department of the apex bank, Mr Emmanuel Okeji, said: “There are times that government have money in various banks, and yet go borrowing, because they don’t have visibility over their resources, so the TSA make cash management very easy for government so that at any point in time they can take a decision on disbursement.
“Most of the policies we have put together is in the overall interest of the economy, because it is easy for CBN to always concentrate on monetary policy, and exchange rate but of what use will it be if we get the financial sector right and sound and yet the real sector that supposed to move the economy is not moving. Basically the financial system is making money but we are supposed to be making more money by servicing the real sector of the economy. That is why at a point in time we have to intervene in the power sector,” he said.
He explained that the total failure of the oil sector led to the urgent decision of the government to diversify its economy to other sectors to raise revenue for the country, adding that the federal government through the Central Bank of Nigeria has decided to give the agricultural sector the needed support to boost the nation’s economy adding that the government will create an enabling environment for the private sector which has the capacity to move the nation forward “the job of the government is to provide the necessary infrastructure and other enabling laws for the private sector to operate.
“So what we advocate is your support in letting people knows why we should put the nation first in everything we do. We intend to enhance development financing by accelerating strategic disbursement to pivotal sector to boost local production and ease unemployment.
“We also increase collaboration with real sectors, supporting ministries like agriculture, power etc. we also intend to support private consumption to aggregate demand and of course, we will also continue to embark on policies that will cab the linkages of foreign exchange and then denying foreign exchange speculators the opportunities to reap where they have not sowed,” he explained.
President of the group Mr Etuk Bassey Williams, while commending steps so far taken by the Buhari led federal government in diversifying the nation’s economy during his welcome address advised the government to invest heavily in the solid mineral sector in order to boost the economy of the country adding that the sector if properly harnessed is capable of generating more revenue for the government than the crude oil.
He however explain that the present steps may not be enough to tackle the enormous economic challenges presently being faced by the country and strongly recommend that government should take a conscious, sincere and pragmatic steps in diversifying the economy with emphasis on the solid mineral and agricultural sectors which if properly harnessed is capable of generating in excess of what is currently being generated from crude oil.
“In addition, priority should be given to the growth of small and medium scale industries, which remain the engine of growth of any economy” he said
He commended the efforts of the present administration for been able to respond to the present economic challenges by reducing the over bloated cost of governance and plugging leakages through which monies were hitherto being siphoned.
He said that the country is experiencing another critical stage in her National history where a very sharp decline in oil revenue after a period of boom that saw price of crude oil rose to over a $100 per barrel in the international market “having failed as a country to learn from past mistakes due to our inability to diversity the country’s economy, ensure savings and prudent management of resources, Nigeria is once more grappling with its share of the aftermath of the oil price decline”
