By Tajudeen Suleiman
The central bank of any country is a uniquely influential institution. Due to its mandate of maintaining monetary and financial stability in line with the economic vision of the government, everything it does can impact everyone. That is why a PhD. Economists and experienced bankers are the top picks for heading the banks.
This is why appointments at the central banks are always of interest to institutions, groups, and individuals. In Nigeria of today, the Central Bank of Nigeria is an institution of utmost public interest due to the state of the economy and the ongoing economic and financial reforms of the President Bola Tinubu administration.
But sadly, in Nigeria, appointments into the CBN are not seen as part of the building block for the country’s economic rejuvenation. The CBN is seen only as a juicy institution where the elites scramble for a seat at the table and where politicians invoke Federal Character provisions of the Nigerian Constitution to put their cronies in positions to access the wealth of the nation.
Whereas, in other times, where economic engineering is taken seriously, only the most talented look forward to a career in the institution. A statement about recruitment into the Bank of England (similar to that of the US Federal Reserve) describes the bank as an “intellectually stimulating” environment that is “highly professional.”
It further states that “While organisations in the private sector are focused primarily on profits, the ultimate objectives for us are always the quality of our thinking, the rigour of our analysis and the overall deliverables in line with our vision of promoting the good of the people of the United Kingdom by maintaining monetary and financial stability.”
Emphasising the importance of competence and professionalism for the bank, it says, “The issues we deal with on a daily basis have implications for everyone in the country.” This statement is as true for the United Kingdom as it is true for Nigeria today.
This is why the Central Bank of Nigeria under Governor Yemi Cardoso has broken with tradition. Cardoso, like his counterpart at the US Federal Reserve, Jerome H. Powell, is confronted by an economic reform that has brought financial hardship to the majority of citizens due to rising inflation.
But Cardoso’s reforms at the CBN portray a governor who takes his job seriously and is determined to deliver for the good of the country.
Aside from the monetary policy reforms of the CBN, many will welcome the thrilling news that the CBN recently recruited 16 new directors through a highly competitive process and not through arbitrary promotion. These appointments, which were more of an internal promotion exercise, took effect from March 3, and it affects critical departments of the apex bank such as Monetary Policy; Trade and Exchange; Banking Supervision; Payment Systems and Consumer Protection, among others.
The CBN reportedly engaged the global consultancy firm PricewaterhouseCoopers (PwC) to conduct the selection process for the directors from among top officials of the bank who applied, following an internal advertisement, to ensure only the most competent are elevated. It is highly commendable and in line with global best practices for central banks. It is certainly the type of promotion process needed by the CBN at this time.
Reports indicate that the PwC conducted a two-phase appointment process designed to eliminate bias in the recruitment and ensure the process is transparent. Many would wish that all critical national institutions in the country could also conduct their recruitments in this manner to ensure the right persons, no matter their ethnicity or religion, are put in charge.
Usually, for central banks, the recruitment process will include competency-based interviews, ability testing, occupational or motivational questionnaires, written assessments, case studies, and/or presentations. Anyone who scales through all these is an asset to the institution and must not be denied the chance to help the country because of their religion or where they come from as long as they’re Nigerians.
No one will be surprised by reports that the staff of the bank commended the selection process as objective, transparent, and merit-based. It is a far cry from past tradition, where directors are arbitrarily selected because of their connections with VIPs or because they’re favored by the CBN governor.
This break with tradition is widely seen in economic and financial circles as a step towards strengthening governance and operational efficiency of the apex bank. It signals a significant internal restructuring aimed at enhancing the bank’s operational efficiency and regulatory oversight. An internal memo quoted by Premium Times said the appointments were aimed at “achieving the Bank’s vision and mission for long-term success.”
A look at some of the new appointees also shows that diversity was one of the selection criteria – a point that can never be over-emphasised in a diverse country as Nigeria. While economic policy should be driven by capacity rather than regional or ethnic consideration, inclusivity is essential in a multi-ethnic and multi-religious country like Nigeria,
Mallam Abdullahi Hamisu, the newly appointed director of Banking Services, is from the north of the country. Before his appointment, he served as coordinator of banking services under the Operations Directorate. He now occupies a position that is pivotal to ensuring smooth banking operations across the nation.
Sike Rita Ijeoma, one of the appointees from the South East, is the director of the Financial Policy and Regulation Department. She was formerly the director of the Banking Supervision of CBN. Her expertise and leadership earned her the new position where she is expected to significantly push the CBN’s mission of maintaining a stable and efficient financial system in Nigeria.
Akinwunmi Olubukola Akinniyi, from the southwest, is the director of the Banking Supervision Department. He was an assistant director in the Payments System Management Department of the CBN before his new appointment. He is credited with leading the team responsible for the formulation of payment system policies and facilitating stakeholder consensus on payment system development strategy in Nigeria.
He also participated in major reforms in the Nigerian Payments System, including the implementation of the Nigeria Central Switch, Cashless Policy, and the Payments System Vision 2020.
Oboh Victor Ugbem, a senior development economist, is the new director of the Monetary Policy Department. Victor, who is from the South-south of the country, has over 20 years’ experience in the areas of monetary, financial, and agricultural policies as well as private sector development.
He was formerly an assistant director in the CBN, providing technical support to the design and implementation of the Bank’s policies.
In what appears to be a reflection of the prominent role women now play in the board rooms of commercial banks in the country, the CBN has promoted six women to the position of directors in charge of crucial departments. They are: Yusuf Rakiya Opeyemi – Director, Payment System Supervision: Mrs. Jide-Samuel Omoyemen Avbasowamen – Director, Information Technology: Aisha Isa-Olatinwo – Director, Consumer Protection: Mrs. Sike Rita Ijeoma – Director, Financial Policy and Regulation: Mrs. Monsurat Vincent (Strategy Management and Innovation and Dr. Adenike Olubunmi Ojumu (Medical Services).
Other directors named in the appointment are Dr. Usman Moses Okpanachi (Statistics), Mr. Farouk Mujtaba Muhammad (Reserve Management), Dr. Adetona Sikiru Adedeji, (Currency Operation and Branch Management Department), Mr. Mohammed-Jamiu Olayemi Solaja,(Other Financial Institutions Supervision Department) and Mr. Musa Nakorji (Trade and Exchange Department).
Analysts of the CBN reforms have commended the inclusivity of the appointments despite being merit-based as proof of its objectivity and transparency. Kudos to the CBN Governor for navigating the vexing challenge of federal character while searching for the brightest minds within the system.
It is only when we put people in positions where their skills and qualifications are best suited that we can get positive results. This is what the US Federal Reserve, the Bank of England, and other central banks do to be at the top of their game.
It is hoped that the processes leading to the appointments of these 16 directors would become a tradition to ensure that only bright minds are put in charge of executing the mandates of the apex bank. For the sake of Nigeria and Nigerians.
Cardoso has raised the bar and blazed the trail. He would be judged by the success or failure of his reforms and innovations. On the economic horizon, the weather is getting brighter, and there are reasons to be optimistic.
Nigeria’s economy is recovering faster than anticipated. Inflation eased to 24.5% in January, while Foreign Direct Investment (FDI) inflows are rising, and the Gross Domestic Product (GDP) is expanding.
The BusinessDay reported over the weekend that the Central Bank of Nigeria (CBN)-led Monetary Policy Committee’s decision to maintain interest rates at its last meeting has fuelled a rally in Nigeria’s Eurobond market, reinforcing foreign investors’ confidence in the domestic economy.
The paper wrote that the investment report shows that Nigeria’s Eurobond market closed the month of February in positive territory, signaling sustained foreign investor confidence. Quoting data from the Debt Management Office (DMO), it said the average yield on Nigeria’s Eurobonds closed at 8.80 percent, 41 basis points down from 9.21 percent at the beginning of February, signaling “strong investor appetite.”
The CBN is proving doubters of its reforms wrong. Cardoso and his team of brilliant deputy governors are doing a good job of brainstorming for the public good. They are showing that the central bank is a laboratory of ideas and not a casino for sleazy men in suits. They deserve the support of all Nigerians to rescue the country from the economic abyss into which years of thoughtless leadership have plunged it.
But no doubt, critics would continue to analyse every action of the CBN because of what the organisation represents. So, just as several economic analysts have done, the purpose of this write-up is to urge the team not to rest on its oars.
Tajudeen Suleiman is an Abuja-based journalist. He can be reached via tajudeensuleiman@yahoo.com
