Nigeria should consider liberalizing its economy further by liberalizing foreign exchange controls a little more.
Patrick Chisanga, corporate consultant and chairman, Zambia multifacility economic zone said this during the FITC Though leadership discussion series on Thursday in Lagos.
‘‘The Zambian economy has benefited tremendously from this policy decision,’’ Chisanga said.
Godwin Emefiele, governor, CBN governor, who was represented by Folakemi Fatogbe, director, risk management, CBN commended FITC for the brilliant initiative of bringing high-ranking personalities in the banking industry together to engage and brainstorm on effective and sustainable strategies aimed at continuous development of the industry.
‘‘Choosing a theme for a forum of this nature can be a difficult task. The theme is very relevant in view of the strategic role banks play in facilitating economic growth and development,’’ Emefiele stated.
Chisanga, who was the guest speaker shared some of Zambia’s experiences in National Development to point to some possibilities for Nigeria.
‘‘The decision by the Government of Zambia to fully liberalise foreign exchange controls on 9th March 1994, was a ground breaking development,’’ he said.
‘‘In the first 9 months of the new policy regime, we did experience some capital flight, because the new reality was just too good to be true, to many people both Zambians and foreigners alike.’’
Continuing, he said, ‘‘Rather than panic, we held firm and steadfast and within 18 months we began to experience positive developments. Capital flight came to a stop and instead we began to see net inflows into the country.
‘‘Multiple exchange rates in the economy were wiped out. Macroeconomic stability began to set in. We began to see increased and sustainable inflows of FDI which led to Zambia being rated as one of Africa’s fastest growing economies.’’
Tunde Lemo, former deputy governor, CBN who was present at the discussion series said, ‘‘the country look up to banks to catalyse development. With banks’ robust capital, we see financial inclusion increase.’’
In her welcome address, Aisha Ahmad, deputy governor (FSS) /chairman, FITC said that about 80 percent of activities in the financial system are driven by the banking sector, which underscores the need to strengthen and ensure its resilience.
‘‘Strengthening the banking system requires joint effort from all stakeholders in the industry,’’ said Ahmad. ‘‘An efficient, well-functioning banking system is crucial for effective economic policy transmission.’’
While acknowledging the high risks in the economic environment, she encouraged banks to partner with the CBN in financing the real sectors of the economy directly and through its various de-risking initiatives.
‘‘We should not lose sight of our target on financial inclusion to ensure 80 per cent financial inclusion by 2020.’’
, CBN said the liberalization of foreign exchange (FX) is a gradual process.
‘‘Nigerian population growth is a major challenge. 40 percent of the population are youths,’’ he said.
‘‘We are growing poverty if we do anything about addressing unemployment. We must be ready to patronize them.’’
Segun Ajibola, Immediate past president/chairman of council, CIBN said real growth will only happen if all stakeholders play their roles.
Abubakar Suleiman, MD/CEO, Sterling bank said remarkable progress has been made in corporate governance.
‘‘Corporate governance needs to start with the sovereign. 90 percent underwriting is done by banks,’’ Suleiman said.
Ade-onojobi Niran, assistant director, special duties, MAN, said funding is critical for the manufacturing sector.
‘‘Interest rate is very high. It is inimical to the development of the real sector. The present interest rate is not pleasant to the real sector and we are not getting long term funds.’’
CHINWE AGBEZE
