CBN Says the Worst is Over, Confirms $1bn Foreign Investment in 3 Months

CBN Says the Worst is Over, Confirms $1bn Foreign Investment in 3 Months

The Central Bank of Nigeria (CBN) believes that the worst is over as far as the economic recession facing the country is concerned.

CBN governor, Mr Godwin Emefiele speaking to newsmen at the weekend in Lagos expressed the position of the apex bank on Nigeria’s recovery from recession and other issues.

Emefiele hinted that the economy will begin an upward movement from the 4th quarter of the year which spans October to December.

He said the result of the various measures put in place by the federal government and the monetary authorities would become manifest from around the said period.

The CBN governor stated that one of the measures taken by the bank was to establish a bridge fund for the government to utilise to stimulate the economy whenever the need arose.

The Punch quotes Emefiele as having said, “The worst is over. The Nigerian economy is on the path of recovery and growth. So, please if you are a bystander or sideliner, you are losing; join the train now before it leaves the station.”

Emefiele stated that the introduction of a flexible exchange rate regime has begun to yield results as up to $1bn had come into the country as foreign direct investment in the last 3 months. He also noted that with more investment, interest rates may drop.

The CBN governor equally hinted that another way the government could address the recession is to sell some of its assets in the oil and gas industry in order to raise money, similar to a recent suggestion by Africa’s richest man, Alhaji Aliko Dangote.

According to Emefiele, selling “10 per cent to 15 per cent of our holding in the oil and gas sector could help the government realise up to $20bn which can help to really stimulate spending and also to turn the economy around.”