22 March 2016, Lagos – Despite the poor electricity generation in the country, the Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele has said that projects funded by the apex bank’s intervention fund in the power sector added a generating capacity of 1,274 megawatts of electricity to the national grid in 2015.
In his keynote address at the recent Economic Summit organised by New Telegraph in Lagos, Emefiele also stated that the CBN’s power intervention fund financed the construction of 120 kilometres of gas pipelines during the same period.
He said the power intervention fund was launched to stimulate private sector investment in the power sector.
According to him, the apex bank remained committed to the ideals of this initiative with a view to ensuring tangible benefits from economic growth are delivered to the citizenry.
Emefiele, who spoke on ‘Returning Nigeria to the Boom Days: Prospects of a non-oil economy,’ pointed out that the ask of returning the non-oil economy to its glorious days was possible but would require the creative energies of all the stakeholders.
“It is noteworthy that government particularly at the centre recognises the need too and has committed to diversifying the economy away from oil. In addition, the federal government is prosecuting the war against corruption with vigour, while also strengthening the institutions, rebuilding the framework on enabling macro-economic environment and as well as working assiduously to address the challenges of infrastructure deficit,” he explained.
Emefiele called on local and foreign investors to demonstrate commitment in investing in solid minerals, adding that the constraints in the operating environment would not disappear in a day, despite all the good intentions of the government.
He pointed out that the country’s weakness in value addition was a direct consequence of inadequate innovation and called on the private sector to explore and develop the culture of innovation.
According to him, the banking sector is the life wire of the economic activity of any country as it mobilizes resources from the surplus for the deficit segment and thus efficiently channeling savings for investment.
Emefiele, who was represented by a deputy governor of the apex bank, Dr. Sarah Alade noted that the banking system is also the major instrument of government’s policy strategy from which all other sectors of the economy gets financing.
“In recognition of the above, the CBN as the apex regulator has made focus on creating and sustaining stable macro-economic environment and build vibrant, safe and sound banking system that is capable of supporting the diversification drive of the economy. The bank is also committed to its developmental mandate with intervention programmes across the various sectors but with very strong focus on the real sector,” Emefiele said.
He identified the objectives of CBN’s intervention to include providing enabling environment for increased lending to priority sectors; improved access to affordable credit to fastrack real sector development; encouraging financial institutions to finance the real sector; incentivising borrowers; improving job creation; and promoting the diversification of the country’s economic base.
- This Day