By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has called for the support of the Produce, Add Value and Export (PAVE) initiative which is expected to boost Nigerian consumption and export of local products.
This call was made by the apex bank governor, Mr Godwin Emefiele, who further said the PAVE initiative is akin to South-East Asia’s much referenced export-led industrialization policy which changed the economic fortunes of countries such as South Korea, Taiwan, Malaysia and Singapore.
Delivering a virtual message in Akure, Ondo State at the 32nd Seminar organised by the CBN for Finance Correspondents and Business Editors themed Exchange Rate Management and Economic Diversification in Nigeria: The ‘PAVE’ Option, the Deputy Governor, Corporate Services, CBN, Mr Edward Adamu, said the initiative was designed to be the key for fast-tracking a bucket of substitutes to crude oil export.
According to him, it encourages backward integration for the local production of select items, urging all hands to ensure the success of PAVE, noting that “the initiative would mitigate against future severe consequences of shocks beyond our control.
“I am mindful that our goals may appear ambitious to some. But I am resolute and determined that we can achieve it.
“Many countries that are much less endowed than Nigeria are doing it. Consider for example that agriculture exports alone from the Netherlands was about US$120 billion last year.
“Yet, Netherlands has a landmass of about 42,000 square kilometres, which is much smaller than the landmass of Niger State alone, at over 76,000 square kilometres.”
On COVID-19, he said it was one of the biggest crises that had faced mankind in recent history.
“The pandemic impacted economies, and disrupted business activities globally,” he said.
“Expectedly, Nigeria like most commodity-dependent countries was not spared the deleterious impact of the pandemic, given our dependence on crude oil export as a major source of revenue and foreign exchange.”
He said despite the headwinds associated with the pandemic, the bank would continue to work very hard to ensure that Nigeria remained a vibrant economy.
According to him, it should remain vibrant with a diversified mix of opportunities across sectors such as ICT, Manufacturing, Solid Minerals, Trade and Agriculture.
He said that notwithstanding the modest achievements, the bank would not rest on its oars, as the work was far from over.
Modupe Gbadeyanka