The Central Bank of Nigeria (CBN) has said that due to the fall in oil prices, federation account allocation to state governments have dropped by an average of N2 billion monthly for each state.
Speaking at the 49th Annual Bankers Dinner weekend, Lagos, CBN Governor, Godwin Emefiele, said that the development explains the states’ inability to meet some basic recurrent expenditures including payment of workers’ salaries.
According to the CBN governor, average inflow of foreign exchange into the CBN has fallen by about $1.3 billion per month, resulting to a sharp decline in foreign exchange reserves from $37 billion in June 2014 to $30 billion in March 2015.
He contended that the developments indicated that the fall in oil prices might continue, adding, “This has presented an opportunity to encourage local production and reduce demand for foreign exchange. Nigeria cannot continue on this part of importing everything and anything.”
Also speaking, the President/Chairman of Council Chartered Institute of Bankers (CIBN), Mrs. Debola Osibogun, called on the newly inaugurated ministers to collectively work towards fulfilling the promises of the government to the people of Nigeria, chief among which is economic diversification.
Osibogun listed some of the promises to include includes building a prosperous nation, respected for the right reason, whose citizens can hold up their heads anywhere in the world; to diversify the economy through Agriculture, Solid minerals and the revival of the textile industry which would contribute to helping the economy move forward and act as major revenue earner, thus helping to enhance employment generation among others.
In view of challenges of falling oil revenue and pressure on exchange rate, she said the nation expects the fulfillment of these promises and “we enjoin our ministers to ensure that our hope is not dashed on the altar of personal pursuits”.
She reiterated that 2015 has posed enormous challenges in the economic sphere, but remained hopeful that the various policies and programs introduced by the CBN and federal government will enable Nigerians to forge ahead.
The Chartered Institute of Bankers of Nigeria (CIBN) is the umbrella professional body for bankers in Nigeria. It was incorporated in 1976 as the Nigerian Institute of Bankers and Chartered in 1990 (now CIBN Act 5 of 2007).
The institute was in South Korea unanimously voted to host the 22nd edition of the World Conference for Banking Institutes (WCBI) scheduled for 2017.
Today.ng
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