MEASURES TO ENSURE FINANCIAL SECTOR CONTRIBUTES TO DEVELOPMENT OF REAL SECTOR


Under this pillar, the CBN has outlined measures to ensure that the financial sector contributes meaningfully to the development of the real sector. These include:
(i)        Leverage on the role of the Bank as adviser to the government on economic matters, to ensure that the financial sector impacts on the real economy;
(ii)      (ii) Take the lead in measuring more accurately, the relationship between the real sector and financial sector, as well as the transmission mechanism;
(iii)    (iii) Evaluate continually the effectiveness of existing development finance initiatives such as
agricultural credit and import-export guarantees;
(iv)    (iv) Take the lead in encouraging examination of critical issues for real sector developments;
(v)      (v) Encourage further studies on the potential of venture capital and private public partnership initiative for Nigeria in the real sector; and
(vi)    (vi) Cooperate with state governments to run pilot programmes in positively re-directing the financial sector‘s contribution to the real sector.

With the above mentioned initiatives, the current banking sector reforms of the CBN is expected to contribute significantly to the development of the real sector of the economy.
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