“Last month, Godwin Emefiele, the suspended Governor of the Central Bank of Nigeria (CBN), resigned from his position, as reported by Reuters. President Bola Tinubu nominated Olayemi Cardoso, former head of Citibank in Nigeria, to be the new central bank governor shortly before the upcoming interest rate meeting. This appointment raised questions about its legality, as there cannot be two governors of the apex bank simultaneously.
However, government sources informed Reuters that Godwin Emefiele, who was suspended as the central bank chief by Tinubu in June and later detained and charged with procurement fraud by state police, resigned last month. This resignation effectively paved the way for Cardoso to replace him. Tinubu forwarded Cardoso’s nomination to the Senate for confirmation, along with four new deputy governors. It remains unclear whether the former deputy governors had also resigned.
The central bank did not respond to Reuters’ request for comment regarding the resignations of Emefiele and his deputy governors. When asked about Emefiele’s resignation, Ngelale declined to comment.
In a statement, Ngelale mentioned that “The President expects the above-listed nominees to successfully implement critical reforms at the Central Bank of Nigeria, which will enhance the confidence of Nigerians and international partners.”
Contrary to analysts’ expectations, the central bank raised interest rates by a smaller-than-expected 25 basis points in July under acting Governor Folashondun Shonubi, one of Emefiele’s deputies. The bank is scheduled to make rate decisions again on September 26, and some analysts anticipate a more hawkish stance.
During his inauguration in May, Tinubu promised a “thorough house cleaning” of monetary policy and emphasized that the central bank should work towards lower interest rates after criticizing Emefiele’s handling of currency policy.
Under Emefiele’s leadership, the central bank pursued unconventional policies, maintaining an artificially strong currency, a policy supported by former President Muhammadu Buhari, which facilitated government borrowings in international markets.
Nigeria’s new government aims to promote investments rather than rely solely on borrowing to create jobs as it seeks to revive an economy grappling with record debt, a weak currency, double-digit inflation, and unreliable power supplies.
Cardoso was part of the team that worked on an economic plan for the new government. He previously served as the Commissioner for Financial Planning and Budget in Lagos State during Tinubu’s tenure as governor from 1999 to 2007.”
