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The Nigerian Financial System Is Not Under Threat – Sanusi

By on December 6, 2012

The Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi Lamido, has debunked claims that the Nigerian financial system is under threat from speculative investments valued at about $10 billion.

He said Nigeria has enough in its reserve to stand firm even if the said investments left the country, adding that the country still has about $36 billion in its reserves.

Speaking at a conference in Abuja the CBN governor said, the high interest rates have stabilised the naira, helped raise foreign currency reserves as well as stabilised the naira.

“The policy is working” in providing price stability, the core mandate of the bank, he said.

It is evident that the Monetary Policy Committee, led by Sanusi Inflation rose to 11.7 per cent in October, staying below the apex bank’s estimate of as much as 15 per cent after the government cut a subsidy on gasoline in January. Additionally, the policy rate remained unchanged at a record 12 percent this year to help support the naira and curb inflation.

There is no indication that lower interest rates will encourage economic growth, as the major impediment to borrowing and credit are lack of power supply, roads, and other infrastructure that the private sector needs, he added.