The Senate has officially confirmed the appointment of Dr. Olayemi Cardoso as the next Governor of the Central Bank of Nigeria (CBN). This confirmation came following rigorous screening by the Upper Chambers of the National Assembly. The Senate also gave its nod to the nominations of the four Deputy Governors of the CBN, namely Emem Usoro, Muhammad Dattijo, Philip Ikeazor, and Bala Bello, after thorough scrutiny.
The confirmation of these key appointments took place on a momentous Tuesday, following a thorough vetting process by the upper legislative body. Senate President Godswill Akpabio announced, “The nomination of Olayemi Cardoso is hereby confirmed as governor of the Central Bank of Nigeria (CBN),” solidifying Dr. Cardoso’s pivotal role in Nigeria’s economic landscape.
Dr. Cardoso had been serving in an acting capacity after President Bola Tinubu nominated him earlier in September. His confirmation before the Senate took place on Tuesday, September 26, 2023, where he faced a barrage of questions from lawmakers on various critical economic issues, including inflation, fiscal and monetary policies, foreign exchange, and his plans to foster economic growth as the CBN governor.
In response to concerns about rising inflation, Dr. Cardoso pledged to implement effective measures to tackle this pressing issue. He emphasized the need to restore the CBN’s independence and credibility by refocusing on its core mandate and promoting a culture of compliance.
He pointed out, “Much has been made of past CBN forays into development financing such that the lines between monetary policy and fiscal intervention have become blurred. In refocusing CBN to its core mandate, there is a need to pull the CBN back from direct development finance interventions into more limited advisory roles that support economic growth.”
Nigeria’s inflation had surged to 25.80% in August 2023, marking a 1.72% increase from the previous month’s 24.08%. This rise was primarily attributed to the removal of petrol subsidies and the devaluation of the official exchange rate, which impacted consumer prices. Additionally, month-on-month inflation climbed to 3.18% in the review month, up from 2.89% in the prior month.
Addressing concerns about inflation, Dr. Cardoso assured that the new CBN leadership would adopt an evidence-based monetary policy, avoiding decisions based on whims. He also made a commitment to uphold compliance and ensure that the CBN remains apolitical during his tenure.
“I believe that the Central Bank under our watch will have no choice but to embrace a culture of compliance,” he affirmed. “We will not wait for oversight to come and tell us what to do. We will ensure that by the time the system is passing through us, we catch it and we deal with it,” he added, promising zero tolerance for compliance violations.
With his comprehensive vision and commitment to addressing critical economic challenges, there are high hopes for a strengthened and more resilient Nigerian economy under his leadership at the CBN.