Michael Olayemi Cardoso has officially commenced his tenure as the 12th Governor of the Central Bank of Nigeria (CBN), following Senate clearance. In his inaugural address, Cardoso pledged to provide transparent and focused leadership, emphasizing adherence to rules and a commitment to returning the apex bank to its core monetary policy responsibilities.
Cardoso, a former chairman of Citi Bank and Lagos State Commissioner for Budget and Economic Planning, assured that under his leadership, the CBN would work collaboratively with fiscal authorities for the overall benefit of the economy in the short and medium term.
During his screening by the Senate, Cardoso, along with the four deputy governors (Mrs. Emem Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor, and Dr. Bala M. Bello), responded to questions posed by senators, and all nominees received clearance.
Cardoso highlighted the worrisome issue of the Naira’s exchange rate and expressed the need for a stable exchange rate for the desired economy. He pledged to evolve transparent rules comprehensible to all finance players, promoting a system that fosters trust among investors.
On the matter of inflation, Cardoso stressed the importance of revamping the infrastructure at the central bank to enhance data gathering capabilities. He acknowledged the link between inflation, money supply, and deficit financing, emphasizing the need to address these issues head-on.
In refocusing the CBN, Cardoso proposed limiting the bank’s direct development finance interventions and transitioning towards advisory roles that support economic growth. He assured the Senate that the CBN under his leadership would not be influenced by politicians.
Regarding compliance, Cardoso emphasized the importance of adhering to the law and assured zero tolerance for non-compliance with orders. He expressed his commitment to engaging with the Senate twice a year, as stipulated by law, to ensure transparency and compliance.
In addressing immediate issues at the CBN, Cardoso highlighted both operational and systemic concerns, particularly unsettled obligations. He stressed the need to ascertain and handle outstanding obligations to address foreign exchange market challenges.
Financial experts have positively rated the appearance of the new CBN governor and his deputies, citing their commitment to returning the central bank to its core responsibilities and addressing key economic issues.
