The current Governor of the Central Bank of Nigeria (CBN) is Godwin Emefiele and under his leadership, the apex bank has disbursed 7 trillion naira in loans over the course of three years, through his loan to deposit ratio (LDR) policy.
This was made known by Mrs. Aishah N. Ahmad, the Deputy Governor, Financial Systems Stability, during the 40th anniversary summit of the Financial Institutions Training Centre (FITC) held in Lagos.
She also stated that notable growth has necessitated conversations concerning Africa’s potentials, thus bringing it to the front. She equally added that just as the financial system was very important in charting the course for the economic recovery route from COVID-19, it would also be very important in achieving Africa’s great potentials.
Mrs. Ahmad went on to add that the apex bank under the leadership of Governor Godwin Emefiele, has taken great steps to achieve an inclusive growth and the LDR policy has gone a long way to see it come to fruition as the 7 trillion Naira which has been distributed in retail loans is indeed a great feat.
She pointed out that the CBN has put in effort to see to it that lending is taken to the real sector, and that this move is really clear for all to see. This has been achieved not only through intervention funds released but also through some of the policies that have been carefully put in place for this purpose an example of which is the loan to deposit ratio (LDR) policy. The policy was instituted in 2019 and at the moment has added about 7 trillion naira in loans and that should be applauded.
With regards to the banking industry’s stability, Mrs. Ahmad pointed out that by every indication, the system is on solid ground and has really helped with the country’s recovery from the COVID impact. She made it known that the banking sector has remained resilient which can be clearly seen from the reports from the MPC. According to her, the strategic support from the banking sector has played a huge role in helping the country bounce back from the COVID impact.
She also added that this was further made possible by the forbearances given to the banking sector, which allowed them to maintain their capacity to lend. This also availed them the opportunity to provide assistance to their obligors.
In the same vein, she noted that the financial soundness indicators are leaning heavily on capital and liquidity. It is something to be proud of there is the belief that the bank system will keep on providing lending. This lending is not just about wholesale or commercial lending but also lending to small business so that the impact will indeed be felt across board.
Still on her speech, she reminded everyone about the great potential that Africa has. She spoke about Africa being a continent that is so blessed with a lot of material, and natural resources , diverse talent, and thriving economies and as such should be shaped and pushed towards providing wealth, higher standard of living for her population as well reduce income inequality. She pointed out that although this is still a work in progress, a lot can be achieved especially through digital transformation and technology innovation.