The Senate has approved the appointment of Yemi Cardoso as the new governor of the Central Bank of Nigeria (CBN), along with four deputy governors.
During the Senate’s review of the CBN team, they urged the new appointees to address critical issues such as inflation, naira devaluation, manufacturing sector revival, and the floating exchange rate to safeguard the country’s economy from collapse.
The four confirmed deputy governors are Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor, and Dr. Bala M. Bello.
Yemi Cardoso, the newly appointed CBN governor, outlined his vision, expressing his commitment to growing Nigeria’s GDP to an ambitious value of $1 trillion over the next eight years. He also pledged to focus on compliance and internal control within commercial banks, stabilize the Naira exchange rate, and address the rising inflation rate.
Senator Adams Oshiomhole emphasized the importance of getting monetary policies right, particularly with regard to job creation, price stability, exchange rates, and inflation. He also raised concerns about the autonomy of monetary authorities and their relationship with fiscal authorities.
The Minority Leader, Senator Simon Davou Mwadkwon, expressed dismay at the declining value of the Naira, which he considered one of the weakest currencies globally. He called for a reversal of the floating exchange rate policy and other short-term measures to strengthen the economy.
Senate Deputy President Barau Jibrin emphasized the need for strong internal control mechanisms within commercial banks to ensure financial system stability.
Cardoso also stressed the importance of restoring the CBN’s independence and credibility by refocusing on its core mandate and limiting its involvement in development financing.
The article mentions Nigeria’s high inflation rate, which reached 25.80%, and the impact of the removal of petrol subsidies and devaluation of the official exchange rate on consumer prices.
Cardoso outlined plans to address foreign exchange rate issues, inflation, and deficit financing through short-, medium-, and long-term measures. He emphasized the need for a stable exchange rate, economic diversification, transparent rules for foreign direct investment, and addressing unsettled obligations in the foreign exchange market.
Concerns were raised about a growing disparity between the dollar and the Naira, leading to fears of increased currency round-tripping activities and potential economic consequences.
Overall, the Senate’s confirmation of the new CBN leadership highlights the importance of addressing economic challenges facing Nigeria, including inflation, exchange rates, and the need for effective monetary policies.