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President Bola Ahmed Tinubu, in exercising the power vested in him by Section 8 (1) of the Central Bank of Nigeria Act, 2007, recently nominated a new Governor of the Central Bank of Nigeria (CBN) and four deputy governors, who had been screened and cleared by the Senate to function in the offices. They included a chartered insurance broker and former banker, Dr. Olayemi Michael Cardoso, as the new head of the apex bank, Mrs. Emem Nnana Usoro; Mr. Muhammad Sani Abdullahi Dattijo; Mr. Philip Ikeazor and Dr. Bala M. Bello as deputy governors.
In line with the provisions of the law, Cardoso and the four CBN deputy governors had appeared before the Senate for screening, wherein they addressed the federal lawmakers on salient economic issues as well as gave insight into the way they would go about their jobs. Satisfied with their presentations and believing in their ability to serve the nation at the apex bank, the Senate consequently cleared Cardoso as CBN governor as well as Usoro, Dattijo, Ikeazor, and Bello as deputy governors. They would serve in the offices for five years in first instance, subject to reappointment for another five years term thereafter.
At the screening, the CBN governor had told the Senate that he would make compliance with legal provisions his watchword as well as being proactive. Promising what he called a “cultural shift and a change in mind set,” Cardoso said that as the CBN governor, he would act in his office with all diligence, without doing anybody’s bidding. “As far as I am concerned, under my leadership, we will not be hijacked by anybody. The idea is to ensure that we do what is right, when it is right and how it is right,” he promised. This is well said and reassuring, coming at a time when monetary policies and actions of the CBN leadership have been seemingly politicised.
Cardoso has the requisite qualification to do well as the governor of CBN. He studied Managerial and Administrative Studies at the Aston University, United Kingdom, where he obtained a Bachelor of Science (B.Sc.) degree. He has a Master’s degree from the Harvard Kennedy School in Public Administration. He also fits into the description by the CBN Act of a person “of recognised financial experience,” having served in the past as commissioner for economic planning and budget in Lagos state as well as founding chairman and co-chair of Ehingbeti Summit, the Lagos state economic summit.
The CBN governor had worked also at the Citibank, where he rose to the position of Vice President and later chairman of the board. He co-founded the Citizens International Bank and served as executive director for eight years. He was the chairman of the board of EFinA. He served as a board member of MRS Oil. He was a member of the Cities Alliance’s Africa Think Tank Group, a group created to solve urban development challenges. He was a member of the advisory board of Lagos Business School and chairman of the board of African Venture Philanthropy Alliance.
With this pedigree and his promises so far, Nigerians expect the CBN governor to make a difference in the discharge of his duties. He should move in a fast pace to address the challenges in the financial sector. He should draw a distinction between fiscal and monetary policies and concentrate on his core mandate without dabbling into matters that are not within his purview. He should, as a matter of urgency, arrest the free fall of the Naira in relation to the dollar and other currencies. At a time when the Naira is exchanging at N1, 000 to one US dollar due to the floating of the local currency, the CBN governor should deal with the distortions and structural issues responsible for the ugly development.
Cardoso should ensure forex availability for manufacturers to enable them bring in raw materials and machineries. A situation where manufacturers rely on the parallel market to source for forex is unacceptable. He should ensure transparency in monetary policy and do everything possible to restore trust and confidence in the financial system.
The CBN governor should be able to make interventions in critical sectors, work towards a single digit interest rate and ensure the efficiency of institutions in the financial sector. He should also carry out reforms that would help in economic boom and avoid the mistake of dabbling into politics, no matter the temptation.
We believe that Cardoso should do the right thing. Nigerians and the business community are yearning for monetary policy redemption. We urge Cardoso to make an appreciable impact as the CBN governor in the next couple of months.
