THE Central Bank of Nigeria (CBN) has said that the country’s financial sector faces uncertain times. Also, the apex bank said the CBN might cease to exist in the next 50 years if the monetary union being envisaged comes to fruition.

Governor of the CBN, Professor Chukwuma Soludo, disclosed this in Abuja on Monday at the beginning of a week-long 50th anniversary of the apex bank.

Going down memory lane, Professor Soludo said the CBN had made some remarkable achievements in the last 50 years.

Some of these, according to him, were the increase in the country’s GDP from N2.25 billion in 1960 to N24 trillion in 2009, the rise in external reserves from $602.8 million in 1960 to $47 billion in 2009.

Other achievements, he said, were the increase in the number of banks and their branches from 12 and 160 respectively to 24 and 5,434. He also said there had been a significant increase in the number of depositors from 13 million in 1960 to 35 million in 2009.

Notwithstanding these achievements, the CBN governor said there was no cause for celebration as the global financial meltdown and the very poor state of the Nigerian economy had detracted from the success in the last 50 years.

‘’We should bow our heads in sobriety to reflect on the road ahead,” Professor Soludo said.

On the future, the apex bank boss said the road ahead for the financial system was bumpy as a result of globalisation

He said Nigerian banks were vulnerable to all the attendant consequences of globalisation while they faced a future that was uncertain.

Professor Soludo said in the next 50 years, there might not be anything like the CBN again if the African Central Bank being envisaged and the monetary union became a reality.

In a keynote address delivered on behalf of President Umaru Yar’Adua by the Minister of Finance, Dr. Mansur Muhtar, the president, like Professor Soludo, agreed that the CBN achievements notwithstanding, a number of challenges still remained.

He said these challenges had been magnified in scope by the ongoing global financial crisis, whose second round knock-on-effects had already begun to take its toll on the economy and the financial system through marked deterioration in the fiscal and external accounts.


“It is, therefore, appropriate that we use this moment to not just review landmark historical trajectories of the bank, but to also engage in deeper reflections on how we build on the progress so far made to further strengthen the capabilities of the CBN and enhance its capacities in executing its mandate, particularly against the background of the ongoing global economic slowdown,” the president remarked.

The president asked the CBN to undertake a critical review of its human resource-base and capabilities and systems, processes and procedures to improve efficiency and effectiveness.

President Yar’Adua also said the apex bank should look beyond boundaries to draw lessons and benefit from other countries’ experiences

Going by soludo's pronouncement,,,no bank in naija would have problems,,,may be we can trust him now with this??

Why do I get the feeling you read only the heading of your own post?