Nigeria’s economic crisis needs bold, persistent strategy – Emefiele

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele Thursday said that despite challenges being faced by the economy, there is need for all economy managers to be bold and persistent in finding lasting solutions to the problems.

The CBN boss spoke at the 35th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria, held in Lagos.

Emefiele who spoke on the theme: “Changing Business Environment: The Role of Internal Auditors” said the country was at a crucial point in its financial history as seen in the economy being in recession because of drastic fall in prices of crude oil.

“The price of oil which is our main source of foreign exchange earnings and government revenue has significantly reduced, and may remain so for a long time. Money is scare for most citizens. Regrettably, because our economy is still largely import-dependent, this fuels the general rise in the prices of goods and services.  Hence, there is a noticeable decline in the purchasing power of the people. Indeed, there are many challenges. But, I also see opportunities,” he said.

The CBN boss said that if the challenges are well tackled, the current situation can pave the way to future prosperity. “That is why the Federal Government and the CBN is constantly formulating and re-evaluating policies that we believe will set us on the path of greater economic prosperity. Where and when necessary, we must remain bold and persistent, and never afraid to try new ideas, as these are major requirements in a time of change. That is why I am confident that Nigeria will overcome our current challenges. But, I suspect that we can only overcome these challenges if we are ready to make fundamental change in many of our attitudes, orientations and practices,” he said.

Speaking further, he said change is the categorical imperative of the moment, and applies to the CBN as the nation’s lender of last resort and the banking sector regulator; it applies to Deposit Money Banks (DMB’s) and other financial institutions – as financial entities and fiduciary intermediary agencies; and even, change is required from the public that we all serve.

“For you as internal auditors, the changes may seem slow or rapid; they may be merely procedural or at times they may be radical. Whatever may be the case, the cumulative effect of change is to alter the business environment in which you serve. As a concomitant, you must also upgrade your capacities, operations and methods. If you do not do that, you will become victims of change. Therefore, you have a choice to either treat this gathering as a mere quarterly routine or treat is as an opportunity to analyze and prepare for the future. Let me explain why I hope you should choose the latter,” he stated.

Continuing, he urged the auditors o understand that banking industry is built on people and is driven by services and technology. “People and organizations are becoming increasingly sophisticated. Their needs are more diverse and so are the services and the technologies to meet those needs. Indeed, technology is dramatically changing the face and environment of banking. Transactions of high volume and value are consummated with the click of a button”.

“Similarly, transactions are conducted simultaneously in multiple jurisdictions, across boundaries and time zones. As a result, efficiency has grown exponentially. As a corollary, the risks of doing business are equally high. The possibility that a careless mistake, let alone a fraud, can destabilize an entire institution and have systemic effects on the industry should be of concern to all of us.  This should be more so at a time of economic fragility. That is why you must stay ahead of the curve and be on top of your game,” he said.

He said internal auditors must be proactive in identifying and addressing new risks or emergent issues in organizational controls and compliance requirements. The auditors, he added, cannot afford the luxury of professional