Governor of the Central Bank of Nigeria (CBN) Olayemi Cardoso, has slammed his predecessor, Godwin Emefiele for undertaking policies which put the country’s apex bank in a bad light in the past few years.
He said the issues arose from corporate governance failures, diminished institutional autonomy of the Central Bank of Nigeria, a deviation from the core mandate of the Bank and unorthodox use of monetary tools.
Cardoso stated this on Friday, November 24 while delivering his speech at the Chartered Institute of Bankers of Nigeria’s (CIBN) 50th-anniversary event.
He explained that the CBN suffered from corporate governance failures, diminished institutional autonomy, a deviation from the core mandate, and unorthodox use of monetary tools.
He, however, promised that the issues affecting the apex bank would be tackled under his watch.
The governor said; “I am aware that events over the past few years have also put the CBN in a bad light. These issues can be attributed to various factors, such as corporate governance failures, diminished institutional autonomy of the Central Bank of Nigeria, a deviation from the core mandate of the Bank, unorthodox use of monetary tools, an inefficient and opaque foreign exchange market that hindered clear access, a foray into fiscal activities under the cover of development finance activities.
“There was also a lack of clarity in the relationship between fiscal and monetary policies, among other challenges.
“Hitherto, the CBN had strayed from its core mandates and was engaged in quasi-fiscal activities that pumped over N10tn into the economy through almost different initiatives in sectors ranging from agriculture, aviation, power, youth and many others. These distracted the Bank from achieving its objectives and took it into areas with limited expertise”.
“Under my leadership, the Central Bank of Nigeria will vigorously address these issues. We will tackle institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies.
“We assure investors and the business community that the economy will experience significant stability in the short-to-medium term as we recalibrate our policy toolkits and implement far-reaching measures.”
