BY OKEY NDIRIBE
Central Bank of Nigeria (CBN) has adopted monetary tightening measures to curb inflationary pressures and sustain financial stability in the country.

This was disclosed in Abuja by Governor of  the apex bank,  Mallam  Sanusi Lamido Sanusi,  while making his remarks during the opening ceremony at a regional conference on “Post Economic Reforms : Implications for Sustained Economic Development in ECOWAS “ organized by the West African Institute For Financial and Economic Management (WAIFEM).

He also urged financial policy makers in the sub-region to be prepared to adopt additional measures that would cushion the effects of a fresh round of economic crisis in Europe.

Sanusi further stated that Africa had been largely shielded from the last global financial crisis because of its limited integration into the global economy and the international financial system adding that in West Africa, normalcy had returned to several countries within the sub-region.

According to him: “While the humanitarian crisis in East Africa poses further threats to many African countries, average growth rate for most economies in the region are projected at six percent on the back of strong domestic demand and accelerating export”.

He continued: “In the ECOWAS sub-region, relative normalcy has returned to Cote D’Ivoire after severe disruptions following the 2010 presidential elections.  The presidential election has come and gone in Nigeria and economic and political activities have been restored in full swing. “

Buttressing his position, the CBN boss stated that last month, the nation’s  monetary policy rate was increased by 50 points to 9.25 percent while the cash reserve ratio for  banks was kept at four percent adding that growth rate had been robust even though recent security challenges in the country remained a threat to investors confidence.

Sanusi also stated that all Nigerian banks had been fully recapitalized and relative stability had been restored to the financial system adding that no bank had been allowed to fail in the country.

He continued: “In Nigeria, as you may be aware, the various banking sector reforms adopted have yielded quite outstanding results and we are proud to say that this has been done without recourse to public funds or depositors losing their money”

He further stated that the apex bank had taken various legal, institutional and governance measures with the resolute passion to put the financial system on the path of long term stability and efficiency.

In his own remarks at the occasion, the Director-General of WAIFEM, Prof. Akpan Ekpo, expressed concern  over the fresh round of financial crisis  which was imminent  in Europe adding that the conference  provided an opportunity for participants to  present  proposals to ensure the continued growth of the regional economy.

Commenting on the global economic crisis which erupted few years ago, Ekpo said “Though the crisis emanated from the developed economy of the USA, due partly to the collapse of the credit and mortgage sub-sector, countries in our sub-region felt the impact of the crisis in various forms”.