Central Bank of Nigeria

The Governor of Central Bank, Charles Soludo needs no introduction on the World stage of banking. In January this year he was presented with two notable awards, namely “Most outstanding Governor of a Central Bank” in Africa and the World for 2006, which was presented by Bankers magazine in recognition of his successful implementation of innovative banking policies which have been instrumental in the repayment of the country's debt to the Paris club on 29 April this year. Soludo has hit the ground running with his Medium Term Economic blue print, the National Economic Empowerment and Development Strategy (Needs), which heralds a new beginning in the Nigerian Finance Sector. Following his recent unprecedented reforms 25 out of the 89 Deposit banks were successful in complying with the first phase of the restructuring process which was to raise the capital base of N25 billion each, either through injection of fresh capital and or merger and acquisition. The goal behind this was to ensure that banks would be strong enough to properly serve the economic needs of the community. The result has meant an inflow in excess of US$652 million and £162,000. One bank allegedly received an unprecedented S250m from two separate foreign banks!

The first quarter has seen Nigeria's stock of external reserves up from N28 billion to N36 billion, a positive balance of payments, strong stock exchange index, inflation largely 10%, interest rates down at 18% and below and a Fitch; Standard and Poor rating of BB. Challenges for the future are bringing inflation down to less than 10%, the liquidation of failed banks and reimbursement to depositors, banking supervision and regulation, promotion of e-payments, revolutionizing the mortgage system and bringing down exchange rates. The Central bank also has plans to deploy some of the Crude Oil earnings to key national priorities which are Power, Security and Employment.

We are living in exciting times and the ‘tide surely is turning' All this is a strong vote of confidence in the reforming financial sector with the 25 reliable banks on course to becoming the hub of Africa's financial centre and Central Bank moving in the right direction towards fulfilling one of its aims, which is to be one of the most efficient and effective world's Central Banks in promoting and sustaining economic development!