Governor Olayemi Cardoso of Nigeria’s Central Bank, CBN, has criticized his predecessor, Godwin Emefiele, for actions that have damaged the institution’s reputation in recent years.
On Friday, at the 50th anniversary celebration of the Chartered Institute of Bankers of Nigeria (CIBN), Cardoso made the announcement.
He claims that poor corporate governance, decreased institutional autonomy, a shift away from the central mission, and an unconventional approach to monetary policy all contributed to CBN’s problems.
He also noted that the foreign exchange market was inefficient and opaque, which made it difficult to gain clear access and expand the central bank’s activities into fiscal policymaking.
“I am cognizant of the fact that recent events have served to further discredit the CBN. Divergence from the Bank’s core mandate, unconventional use of monetary tools, an inefficient and opaque foreign exchange market that impeded clear access, and a foray into fiscal activities under the guise of development finance activities are all possible causes of these problems.
The connection between fiscal and monetary policies was murky, which added another obstacle.
“Hitherto, the CBN had departed from its core duties and was engaged in quasi-fiscal activities that pushed over N10tn into the economy through almost various programs in sectors ranging from agriculture, aviation, power, youth and many others. These, he explained, prevented the Bank from accomplishing its goals and led it into fields where it lacked sufficient knowledge.
But Cardoso assured everyone that the Bank’s problems would be solved under his watch.
He remarked, “Under my leadership, the Central Bank of Nigeria would forcefully address these challenges. Institutional weaknesses will be addressed, corporate governance will be restored, rules will be tightened, and sound policy will be enacted. As we realign our policy toolkits and undertake far-reaching reforms, we can ensure investors and the business community that the economy will see significant stability in the short- to medium-term.
There was a shortage of the national currency, the naira, and hardship for Nigerians in the first quarter of 2023, according to HEALYHYSPOT101, and Emefiele was reportedly the driving force for the policy change.
You may recall that President Bola Ahmed Tinubu dismissed Emefiele from his position as CBN governor back in June.
The embattled governor of the CBN was recently released on N300 million bail for an alleged procurement scam of N1.2 billion.
