BY PETER EGWUATU
The Central Bank of Nigeria, CBN’s banking reforms is yet to impact on the citizenry as lending rate is still high, Director-General, West African Institute for Financial and Economic Management, WAIFEM, Professor Akpan Ekpo, has said.

He also said that the Federal Government has the capacity and expertise to determine the oil benchmark more than the National Assembly.

Ekpo, who spoke weekend during a workshop for financial journalists in Ijebu Ode, OgunState, said: ”In my opinion, in as much as the lending rate is still high in the country, the banking reforms have not really impacted on the lives of the ordinary people.

“It is obvious that the reforms have brought some level of sanity in the industry but its desired effect of impacting on the economy has not been achieved.

“Until we see the lending rate dropping to a level where manufacturing firms or industries can borrow at minimum cost, which will then have a multiplier effect on price of goods, employment and standard of living, then we cannot really say that the reforms have achieved its purpose.”

On benchmark

While answering questions on the controversial benchmark for oil price in determining the 2014 budget, the WAIFEM boss said: “The Ministry of Finance and the budget office have the capacity and expertise to determine the benchmark for oil price than the National Assembly whose function is to make law.

“The fixing of oil price should be conservative in nature as it is a volatile product. It is better to underestimate than over estimate.”

In his paper entitled Economic Reforms in Nigeria: Issues and Lessons, Ekpo said: “Reforms are part and parcel of governance. They even assume a life of their own in most human endeavours, in economic, socio-cultural or political spheres, reflecting limitations of the human mind and need for adjustments.”