Governor of Central Bank of Nigeria (CBN), Dr. Godwin Emefiele has said Nigeria’s economic growth can be traced to several policy measures by CBN.
Dr. Godwin revealed this at the 11th Annual Bankers Committee Retreat with theme: “Delivering Inclusive Growth: Leveraging Digital Finance” in Ogere, Ogun State.
According to him, the Gross Domestic Profit (GDP) growth has stayed positive for ten consecutive quarters after the recession.
He added that the positive growth in GDP has been driven by enhancements in the Agriculture, Oil and Gas, Manufacturing and Information Communication Technology sector.
His words, “The Gross Domestic Profit (GDP) growth has remained positive for 10 consecutive quarters after the recession.
“For the 2nd and 3rd Quarter of 2019, GDP growth stood at 2.1 percent and 2.28 percent respectively.
“The positive growth in GDP has been driven by improvements in Agriculture, Oil and Gas, Manufacturing and Information Communication Technology.”
“Industry wide Capital Adequacy Ratio(CAR) has increased from 10.2 percent in December 2017 to 15.5 percent in September 2019.
“The percentage of non performing loans in the banking sector has declined from its high of 14.7 percent in January 2017 to under 7 percent as at October 2019.
“Credit conditions in the banking system have improved supported by our new policy measures announced in June 2019, which requires banks to maintain a minimum 65 percent loan to deposit ratio.
“In addition, banks are now able to recover delinquent loans from customer’s accounts in other banks.
“As a result, gross credit increased by N1.16 trillion between May and October 2019.
“These measures have placed our banks in a much better position toward supporting a stronger economic recovery.”
“Our GDP growth rate remains below our estimated annual population growth of 2.6 percent.
“Second, while headline inflation has moderated, it is still above the CBN band of 6 – 9 percent.
“Third, continuous growth in our GDP has not led to significant reductions in our unemployment rate and we intend to continue to support efforts that will create jobs for our growing population.”