The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele has said the challenge of COVID-19 will soon be over with the discovery of vaccines that will tackle the heath problem.
Speaking at the Annual Bankers Dinner, organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, the apex bank boss said the emerging reports on progress in developing a vaccine by several firms is indeed reassuring, as it indicates that a solution to the health challenge is in sight.
For him, it will also help to support growth in the medium term, by aiding full restoration of economic activities particularly in service related sectors such as education, aviation, hospitality and tourism.
He said the dinner comes at a challenging time for Nigeria, taking into account the impact of COVID-19 on the global economy. “In Nigeria, we had to address the public health challenge, in addition to implementing a variety of policy measures aimed at reversing the unprecedented downturn in economic activities during the first half of the year,” he said.
READ ALSO: COVID crisis could set-back a generation of women in business- Report
Emefiele provided assessment of the measures taken by the CBN in addressing the impact of the COVID-19 pandemic on the Nigerian economy, as well as our outlook on the path ahead.
Pre-COVID-19 Economy
“As we are all aware, prior to the onset of the virus in December 2019, the Nigerian economy was on a positive growth trajectory, having made a significant recovery from the 2016-2017 recession, which was triggered by the drop-in commodity prices in 2016,” he said.
He explained that following the recession, Nigeria witnessed 12 consecutive quarters of economic expansion, and GDP growth in the fourth quarter of 2019 stood at 2.55 percent. Our exchange rate remained stable for over two years at N360/$ and our external reserve witnessed significant accretions from the sale of crude oil and continued inflows from foreign investors.
“Our banking system remained strong, as key indicators reflected improvements across several areas. Capital adequacy ratio for the banking industry was above 15 percent, surpassing the prudential requirement. The ratio of non-performing loans declined from
11 percent in April 2019 to less than 6.1 percent by January 2020. Our intervention efforts in the agriculture and manufacturing sectors continued to support employment generating activities and improved local production of goods that can be produced in Nigeria,” he said.
COVID 19
Emefiele said the onset of the COVID-19 pandemic in the first half of 2020, and the lockdown measures put in place to contain the spread of the virus, caused an unprecedented shock to the global economy. Global economic downturn, which was particularly significant in the second quarter of the year, saw declines in growth in advanced and emerging market countries, such as the United States (-9.5 percent), United Kingdom (-20 percent), India (-24 percent) and South Africa (-17 percent). As a result, far-reaching measures were taken by fiscal and monetary authorities in advanced and emerging markets to stabilize their respective economies.
He explained that like other economies, the Nigerian economy was not immune from the COVID-19 shock in 2020.
“Nigeria’s gross domestic product (GDP) contracted by -3.4 percent in the third quarter, a welcome improvement from the – 6.1 percent recorded in the second quarter. The negative rate of growth was due to a series of external factors in addition to the lockdown measures, imposed in order to curtail the spread of the virus,” he said.
 Governor, Godwin Emefiele has said the challenge of COVID-19 will soon be over with the discovery of){kind=link}