Senate Confirms Yemi Cardoso as CBN Governor, Plans to Shift Focus from Direct Development Finance to Monetary Policy Interventions
The Central Bank of Nigeria will be refocused to serve the country through monetary policy interventions and advisory roles that complement the ongoing economic reforms of the government. Dr. Olayemi Cardoso, the nominee for CBN Governor, disclosed this at the Senate screening session in the Red Chambers of the National Assembly in Abuja.
He informed the Senate that what was essential to the CBN under his watch was the elements of economic growth, which entails achieving a significant size as an emerging economy in the world.
According to him, “Size matters, and the current administration’s economic plan to aggressively drive a $1trn GDP economy by 2030 aggressively, will be complemented by monetary policy tools.”
Responding to questions from the Senators, especially on short-term measures to restore confidence in the economy, stressed the focus on two key areas, which are operational and systemic. For the operational level, he noted that the core priority will be to verify and promptly find a way to clear unsettled FX Obligations ranging from $4bn to about $6.8bn. On the systemic side, he emphasized that the rules will be open and transparent for all investors.
The seasoned banker said his tenure will encourage stakeholder engagement and will deploy strategies that carry along the entire ecosystem of the financial services industry.
“We shall focus on evidence-based monetary policy and revamp the infrastructure for effective data gathering to guide monetary policy. The CBN will no longer take monetary policy decisions on a whim but will be methodical.”
He assured that there will be a reset in the monetary policy framework. He will align with the periodic engagement with the Senate on economic developments and commit to compliance with the CBN Act and governance code.
Addressing the question of restoring the dignity and integrity of the CBN as an institution, he described his calling as banking and dealing with institutions and said he would only focus on monetary policy and insulate the Central Bank from political activities.
Dr Yemi Cardoso is now the 12th CBN Governor in the history of Nigeria and is expected to restore confidence to the foreign exchange market, work closely with the fiscal policy authorities to stabilize the economy and provide the right signalling to attract investments into the economy.
The Deputy Governors also screened and confirmed are Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr Philip Ikeazor and Dr. Bala M. Bello.
