In his maiden appearance before the Senate, Olayemi Cardoso, the newly appointed Governor of the Central Bank of Nigeria (CBN), made it clear that he intends to address the CBN’s outstanding foreign exchange obligations as a top priority.
Cardoso emphasised the need to enhance transparency, revamp corporate governance, and restore trust in the CBN’s autonomy and integrity. He remarked, “We need to promptly find a way to take care of that. It would be naive for us to expect that we’ll be making too much progress if we’re not able to handle that side of the foreign exchange market.”
Furthermore, the new CBN governor outlined his commitment to maintaining price stability, adopting evidence-based monetary policies, and discontinuing unconventional monetary approaches employed by his predecessor, all in a bid to strengthen the country’s naira currency.
Cardoso’s appointment coincides with a challenging economic landscape, with the naira approaching a 1,000-to-dollar exchange rate in the parallel market.
Cardoso laid out his immediate strategy for stabilising the naira, which involves settling existing financial obligations and establishing transparent rules.
Addressing what he referred to as an ‘operational issue,’ he stated, “Right now, we have a situation where we are aware that there are unsettled obligations by the CBN. Whether it is $4bn, $5bn or $7billion, I don’t know but definitely the immediate priority will be to verify the authenticity and extent of what is owed.
“Number two, apart from the operational issue, there is one that is system related that involves ensuring that we come up with rules that are open, transparent that any of the players in that area understands. We can’t expect foreign investors and portfolio investors to come; we can’t expect them if there is no open, transparent system that everyone understands.
He emphasised the importance of involving relevant stakeholders in shaping these guidelines and welcoming their input, stating that these seemingly straightforward steps would significantly alleviate the challenges faced by investors looking to engage in the market.
The immediate past acting CBN Governor, Folashodun Shonubi, had previously announced on September 6, 2023, that the CBN had successfully concluded negotiations on outstanding dollar debts with commercial banks, assuring that all forex exchange backlogs would be resolved within one to two weeks.
Nigerian Senate Confirms Dr. Yemi Cardoso as CBN Governor
On Tuesday, the Nigerian Senate officially confirmed the appointment of Dr. Olayemi Michael Cardoso as the substantive Governor of the Central Bank of Nigeria (CBN). This confirmation also extended to four deputy governor nominees who will be joining the apex bank.
Dr. Cardoso, who had been serving in an acting capacity since his nomination by President Bola Tinubu in early September, appeared before the Senate on Tuesday, September 26, 2023, to undergo the confirmation process.
During this thorough screening, lawmakers posed several probing questions to Dr. Cardoso, covering topics such as inflation, fiscal and monetary policies, foreign exchange, and his strategies for fostering economic growth in Nigeria.
In response to questions about inflation, the new CBN Governor assured the Senate that he would implement a range of measures to tackle the issue. He emphasised that both short-term and long-term strategies were essential to address the challenges posed by inflation. He also pointed out the government’s efforts on the fiscal front, such as the removal of oil subsidies and enhanced tax collection processes.
Furthermore, Dr. Cardoso pledged that, under his leadership, the CBN would enact economically-friendly policies aimed at stabilising the Naira and addressing the country’s growing foreign debt. He expressed a commitment to promoting local production and collaborating with relevant stakeholders to ensure the stability of the Naira.
After a rigorous session of questioning, the Senate granted its confirmation, making Dr. Cardoso the 11th Governor of the Central Bank of Nigeria.
In addition to Dr. Cardoso’s confirmation, the Red Chamber also endorsed the appointments of Emem Nnana Usoro, Muhammad Sani Abdullahi Dattijo, Philip Ikeazor, and Bala Bello as Deputy Governors of the Apex Bank.
Dr. Olayemi Cardoso succeeds Godwin Emefiele, who was suspended from office in June and subsequently tendered his resignation to President Tinubu.
The Tuesday plenary commenced in the afternoon with the presentation of sixteen bills to the house, including the Central Bank of Nigeria Act Amendment Bill 2023, Fiscal Responsibility Act Amendment Bill 2023, and Student Loans Access to Higher Education Act Amendment Bill 2023, among others. These bills were introduced during the first reading and are now under consideration by the House.
