Nigeria's central bank says banking system under close watch

The Central Bank of Nigeria (CBN) has reiterated its commitment to ensure there were no significant threats that would affect the strategic health of the banking system, governor of the bank has said.

Godwin Emefiele, who also participated at the just concluded IMF and World Bank meetings, confirmed improvement in the Nigerian economy.

Weak macroeconomic environment in Nigeria has continued to exert pressure on the banking system as non-performing loan continue to pose significant pressure on the stability of the nation's banking sector.

The sector, which is very critical to the economy, was still under pressure in spite of huge profit posted by some of the commercial lenders at the end of their half-year..
“The fundamentals we are seeing show that there is a lot of stability in the foreign exchange market, and having come down from high level to the level we are now, and the currency is just fluctuating between 359/365 naira to the dollar.
“We think it is good level compared to where we are coming from. We think it is important to note that as reserves get stronger, as economic fundamentals get stronger, there is no doubt that the naira will get stronger and we will see more appreciation in the currency,” Emefiele said.
He said regulatory bank will continue to focus on the banking system to ensure there were no significant threats that would affect the strategic health of the banking system.

He further said that the CBN would continue to support the Federal Government’s efforts to reduce unemployment and create jobs.