Dr Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has highlighted how his suspended predecessor, Mr Godwin Emefiele, pumped about N10 trillion into the economy through intervention programmes.
Speaking on Friday at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria in Lagos, where he was the special guest of honour, Cardoso 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 clearly distracted the bank from achieving its own objectives and took it into areas where it clearly had limited expertise.”
The apex bank boss however promised that the issues affecting the bank would be tackled under his watch.
He said, “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.”