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    HomeBusinessCBN Committed to Diversifying Economy from Oil Sector, says Emefiele 

    CBN Committed to Diversifying Economy from Oil Sector, says Emefiele 

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    By Tony Tagbo, Abuja 

    The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, said the Bank  is leading the drive towards diversifying the nation’s economy away from oil through numerous interventions.Emefiele stated this at the 33rd Seminar organised by CBN for Finance Correspondents and Business Editors in Abuja at the weekend. The seminar themed, ‘Policy Options for Economic Diversification: Thinking Outside the Crude Oil-Box’, was held simultaneously in Abuja and Lagos.The Governor who was represented by the Director of Corporate Communication Department, Mr Osita Nwanisobi, said the quest for building a robust economy had remained the major component of the monetary policy, adding that Nigeria has largely depended on the oil sector for revenue generation over the past four decades.According to him, there was however the need to build a broad-based and well-diversified economy that would guarantee overall macroeconomic stability.Emefiele said, “the quest for building a more sophisticated economy and agricultural, micro, small, and medium enterprises, industrial and manufacturing concerns have become the major component of our monetary policy.“Nigeria has largely depended on the oil sector for revenue generation over the past four decades, and the sustained decline in crude oil production has continued to negatively undermine the performance of the economy.“Thus, there is the urgent need for a conscientious effort to diversify to other non-oil sectors”.The CBN Governor said the apex bank has supported non-oil sectors such as agriculture, manufacturing, healthcare, education, power and aviation, and other allied economic value chains.He stated that Nigeria has become a rice exporting country, adding that the banks’ flagship Anchor Borrowers programme (ABP) has changed the long-standing dependence on imported rice.He said the CBN had through its Agriculture Credit Scheme, supported commercial farmers in the country in different value chains including oil palm, cotton, and cocoa, among others.He said the implementation of 44 items prohibited from foreign exchange for import had revealed that the bank’s continued support to the manufacturing sector and MSMEs was yielding great results.Emefiele described the theme of the workshop as appropriate and timely as it is in line with the CBN’s quest and resolve to change the narratives of depending on a mono-product oil-led economy, towards building a broad-based and well diversified economy that guarantees overall macroeconomic stability.The CBN Boss said the quest for building a more sophisticated economy anchored on agriculture, Micro, Small and Medium Enterprises, industrial and manufacturing concerns have become the major component of the apex bank monetary policy.The Governor further stated that the apex bank’s health sector intervention was beginning to reduce healthcare tourism, which according to him, was helping to conserve the country’s foreign exchange and improve the well-being of Nigerians.He said apart from reducing medical tourism, the CBN intervention in the health sector is helping Nigeria to conserve foreign exchange and improve the well-being of the people.He said, “Nigeria has largely depended on the oil sector for revenue generation over the past four decades and the sustained decline in crude oil production has continued to negatively undermine the performance of the economy.“Thus, there is the urgent need for a conscientious effort to diversify to other non-oil sectors. As I have often said, it is important that we work to create an economy that will enable us feed ourselves, create jobs for our teeming youths and improve the standard of living of our people.“With our population growing by over 3 per cent per annum over the past seven years, against a less than steady growth in output since 2019, expanding the production and industrial capacity of the economy must be given special attention to ensure overall macroeconomic stability.“The Central Bank of Nigeria, under my leadership, has taken major leaps to diversify the economy away from largely oil-based economy through our numerous interventions.“We have supported non-oil sectors such as agriculture, manufacturing, health care, education, power and aviation and other allied economic value chains.“Let me take this medium to inform you once again that our intervention in the health sector, for example has begun to reduce the health care tourism being sought outside the country which is helping to conserve our foreign exchange and improve our well-being.”Emefiele also explained that the continued support of the CBN to the manufacturing sector and MSMEs have been yielding great results.Furthermore, he said the new 100 for 100 Policy on Production and Productivity, which is targeted at harnessing local raw materials to increase domestic production, as well as exports through our deliberate credit and other supports, will soon begin to yield quality results.

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