Olayemi Cardoso, the current governor of the Central Bank of Nigeria (CBN), criticized his predecessor, Godwin Emefiele, for implementing policies that negatively affected the reputation of the country’s central bank in recent years.
Cardoso made these remarks during a speech at the 50th-anniversary event of the Chartered Institute of Bankers of Nigeria (CIBN).
He stated that the CBN experienced issues with corporate governance, a loss of institutional independence, a departure from its primary objectives, and the unconventional use of monetary tools.
In the past few years, he also pointed out that the apex bank has faced significant challenges. These challenges include an inefficient and unclear foreign exchange market, which has made it difficult to access and engage in fiscal activities.
“I am aware that events over the past few years have also put the CBN in a bad light. These issues can be attributed to various factors, such as corporate governance failures, diminished institutional autonomy of the Central Bank of Nigeria, a deviation from the core mandate of the Bank, unorthodox use of monetary tools, an inefficient and opaque foreign exchange market that hindered clear access, a foray into fiscal activities under the cover of development finance activities.
“There was also a lack of clarity in the relationship between fiscal and monetary policies, among other challenges.
“Hitherto, the CBN had strayed from its core mandates and was engaged in quasi-fiscal activities that pumped over N10tn into the economy through almost different initiatives in sectors ranging from agriculture, aviation, power, youth and many others. These distracted the Bank from achieving its objectives and took it into areas with limited expertise,” he said.
Cardoso, however, assured that he would address the problems facing the Bank during his tenure.
He said, “Under my leadership, the Central Bank of Nigeria will vigorously address these issues. We will tackle institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies. We assure investors and the business community that the economy will experience significant stability in the short-to-medium term as we recalibrate our policy toolkits and implement far-reaching measures.”
It should be noted that Emefiele led the controversial Naira redesign Policy, which caused a shortage of currency and difficulties for Nigerians in the first quarter of 2023.
Allub Times recalls that Emefiele was suspended as CBN governor in June by President Bola Ahmed Tinubu. The troubled CBN governor was recently released on bail of N300 million for an alleged procurement fraud of N1.2 billion.
