To mitigate credit risk, Monetary Policy Committee (MPC) has enjoined Nigeria bank to de-risk the financial market through the development of a reliable credit scoring system.
The Governor, Central Bank of Nigeria, CBN, Godwin Emefiele who made the statement after MPC meeting on Tuesday in Abuja said it will encourage them to safely grow their credit portfolios.
The committee also called on the fiscal authorities to expedite action on expanding the country’s tax base to improve government revenue and stem growth in public borrowing.
The committee in its communique observed that bank had started the prescription of using benchmark loan to deposit ratios to redirect the banks focus to lending.
Expressing the need for the fiscal authorities to build buffers to avert macroeconomic downturn in the event of decline in oil prices, the apex bank committee also urged banks to intensify efforts to encourage Nigerians in the diaspora to use official sources for home remitances.
Emefiele noted that using official source for remitting would complement other measures geared towards improving Nigeria’s current account balance.
He also advised bank to consider introducing incentives such as the reduction of charges on diaspora home remittances into the country.
He said the4e was need to boost output growth through sustained increase in consumer credit and mortgage loans and granting loans to Small and Medium Scale Enterprises companies.
On the Africa continental free trade agreement (AfCFTA), the committee urged the federal government to put in place measures to aid the economy in realising the benefits and full potential of that Agreement.
In particular, it noted the need to resuscitate moribund industries in Nigeria and improve key infrastructure in order to strengthen the productive base of the economy, great job opportunities as well as boost exports.
