- Says Nigeria will exit recession in the first quarter of 2021
The Governor of the Central bank of Nigeria, (CBN), Godwin Emefiele, has appealed to economic analysts to stay clear from analysis that can create panic and thus hamper the economic recovery process.
Emefiele, who stated this while delivering his keynote address at the 55th Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos on Friday, said, “When you overdramatized you create panic in the system and that slows down the process of recovery.
The CBN governor has often accused “armchair” economists of making exaggerated comments when expressing their views on the economy.
The apex bank boss also assured that the nation’s economy will grow by 2% in 2021, adding that the Bank is optimistic that its various intervention will make Nigeria emerge out of recession in the first quarter of 2021.
He emphasized on the need to find ways to insulate the economy from the impact of these shocks through diversification efforts, while also working to ensure that the nation adheres to safety protocols in order to prevent a surge in COVID-19 related cases, as this could further cripple economic activities.
Emefiele also said Nigeria’s external reserves, which currently stand at $35bn, are sufficient to cover seven months of imports of goods and services.
He said the decline in crude oil earnings as well as the retreat by foreign portfolio investors significantly affected the supply of foreign exchange into Nigeria, adding that in order to adjust for the decrease in the supply of foreign exchange, he said the naira depreciated from N305/$ to N360/$, and subsequently to N380/$.
