The Central Bank of Nigeria acknowledged the colossal damage inflicted on the naira within the past 24 months owing to a dwindling economy and falling oil prices.
CBN’s director of Banking and Payment System, Mrs. Tokunbo Martins, made this known while speaking at a round-table discussion organised by the Risk Managers Association of Nigeria in Lagos on Friday 25 November 2016.
“There is a need to avoid the situation the world experienced during the global financial crisis through the use of regulations and standards. During the global financial crisis, risk managers got significant amount of the blame.
“The nation’s Gross Domestic Product has contracted by 2.2 per cent, inflation has gone up to above 18 per cent, the currency has depreciated by about 85 per cent in the past two years, and manufacturing has contracted by three per cent.
“The oil that we produce, apart from the price, has fallen by about 70 per cent. The volume has also contracted a great deal and banks are exposed to manufacturing, oil and gas, and to the government.
“The government’s revenue has declined. Non-performing loans have increased. We do have a very cocktail of risks in our hands. What is the future of risk management? It is more and more regulation and standards.”