The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has insisted that Nigeria needs to stop its heavy dependence on crude oil earnings for public revenue and foreign exchange.
This disclosure was made by Emefiele, on Saturday, December 5, 2020, while speaking at the prize presentation ceremony to mark the end of the 2020 CBN Governor’s Golf Cup tournament at the IBB International Golf and Country Club, Abuja.
According to a report from News Agency of Nigeria (NAN), the CBN Governor, who was represented by Mr. Edward Adamu, Deputy Governor, Corporate Services, at the apex bank, explained that it is important for the country to harness its other economic potentials to enhance its growth and facilitate the early exit of the economy from the current recession.
He disclosed that the CBN decided to go into sponsoring numerous sporting events in the country including golf, because sports cannot be left behind while deploying available tools to ensure the development of the country since it attracts foreign exchange.
He said, “The Bank’s consistency in promoting the game of golf and other sports in the country has had a remarkable impact on youths and sportsmen and women generally. In particular, the sponsored events have continued to provide platforms for Nigerians to express themselves and launch into the international sporting sphere. At the CBN, we are committed to sustaining people-centred policies.’’
What you should know
- Economic experts and International Financial organizations like the World Bank and the International Monetary Fund (IMF) have stressed on the need for the country to diversify it sources of revenue and have been critical of its over-dependence on crude oil for its foreign exchange earnings.
- They argued that this was not sustainable as mono-product economies would not be able to withstand the shock that will be associated with any downturn on such products as is being experienced during this coronavirus period.
- Diversification and harnessing of other economic potentials will reduce risks associated with being a mono-product economy and lead to growth.
- It can be recalled that the NBS announced that the country had entered into its second recession in 5 years in the third quarter of this year as the Gross Domestic Product (GDP) fell for the second consecutive quarter.