Olayemi Cardoso, governor of the Central Bank of Nigeria
(CBN), says Nigeria must ramp up oil production to boost the economy.
Speaking at a press conference on Tuesday after the monetary
policy committee’s 297th meeting in Abuja, Cardoso said inasmuch as the
strategy of the apex bank is to unlock as many diversified sources as possible
into the foreign exchange (FX) section, it is not enough and can never replace
the fundamentals.
The central bank governor said as long as the country
operates on a monolithic economy, achieving a strong exchange rate “that we all
so desire” would continue to be hampered.
“We may like to think or dream it can, but it can’t. Until the fundamentals are fixed and in place, you will continue to sub-optimise,” Cardoso said.
“Oil production has got to be ramped up to the level that
will carry the economy. I think we are all ongoing witnesses to the efforts
that are being made in that sector. It has to happen.
“I spoke about the sad situation that we as Nigerians face
today whereby we are a monolithic economy.
“We need to diversify our economy. There is so much that a
central bank can do. Without the fundamentals in the right position, we will
continue to sub- optimiser.”
The CBN governor said Nigerians must find ways to achieve
import substitution.
“It can not just be about import and we must be able to
calibrate accordingly our taste for foreign goods,” Cardoso said.
“These are all things that will determine essentially where
we settle in respect to our foreign exchange rate.”
He said the central bank is determined to play its part in
ensuring that the market operates efficiently, while warning that the apex bank
is ready to penalise “those who play the market”.
On September 10, the Organisation of Petroleum Exporting
Countries (OPEC) said Nigeria’s average daily crude oil production increased to
1.35 million barrels per day (bpd) in August.
However, the oil output was below the OPEC quota of 1.5
million bpd.
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