CBN Governor Cardoso vows to rectify past policies

Olayemi Cardoso, the current Governor of the Central Bank of Nigeria (CBN), didn’t mince words as he criticized his predecessor, Godwin Emefiele, for implementing policies that cast a negative light on the apex bank over the past few years. Cardoso made these remarks during his speech at the Chartered Institute of Bankers of Nigeria’s (CIBN) 50th-anniversary event on Friday.

Highlighting the challenges faced by the CBN, Cardoso pointed to corporate governance failures, diminished institutional autonomy, a deviation from the core mandate, and unorthodox use of monetary tools as contributing factors. He also identified an inefficient and opaque foreign exchange market that hindered clear access and the apex bank’s involvement in fiscal activities.

Addressing the issue, Cardoso acknowledged, “Events over the past few years have put the CBN in a bad light. These issues can be attributed to various factors, such as corporate governance failures, diminished institutional autonomy, a deviation from the core mandate, unorthodox use of monetary tools, and an inefficient and opaque foreign exchange market.”

He specifically called attention to the quasi-fiscal activities of the CBN, noting that over N10 trillion was injected into the economy through various initiatives, diverting the bank from its primary objectives and venturing into areas with limited expertise.

However, Cardoso assured that under his leadership, the CBN would address these challenges. He pledged to tackle institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies. The governor promised investors and the business community that the economy would experience significant stability in the short-to-medium term as they recalibrate their policy toolkits and implement far-reaching measures.

Emphasizing the need for corrective action, Cardoso stated, “Under my leadership, the Central Bank of Nigeria will vigorously address these issues.”

It’s worth noting that Godwin Emefiele faced criticism for policies such as the controversial Naira redesign, contributing to currency scarcity and economic hardship in the first quarter of 2023. Emefiele was suspended as CBN governor in June by President Bola Ahmed Tinubu and faces legal challenges related to alleged procurement fraud.