With the sheer weight of controversies trailing the exit of the former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, and the current economic mess rocking the country, it is more than necessary to set the task of damage control as well as put in place a new leadership with a demonstrable capacity to retool the apex bank.
Expectedly, the reputation of the bank was at its lowest when President Bola Tinubu nominated Olayemi Cardoso, a prominent figure in the vibrant Nigerian finance and public policy arena with a career spanning over three decades, to clear the proverbial Augean stable in the apex bank.
Cardoso, along with the four deputy governors- Emem Nnana Usoro, Muhammad Sani Abdullahi Dattijo, Philip Ikeazor and Bala Bello, were confirmed by the Senate on Tuesday.
Will this new team be arrogant and reckless like their immediate predecessors? Do they have the capacity to reform the bank and put the Nigerian economy on the path of sustainability, especially in a period when the Naira is on a tailspin?
Millions of Nigerians, who may have expressed anxiety at the nomination of the new leadership at the CBN were bound to have a change of mind with the kind of candour, patience, humility and exemplary mastery of the Nigerian economic dynamics displayed at the screening of the new CBN leadership by the Senate on Tuesday.
With the senators firing questions from all angles, it was the calm Cardoso who led his deputies to roll out strategies to reposition the CBN in a way that engenders appropriate monetary policies.
Cardoso, who pledged to ensure the culture of compliance in the apex bank, warned that there would be zero tolerance for non-compliance, an assurance that elicited commendation from the National Assembly members. Cardoso said that as a commissioner in Lagos, he had the reputation of doing things according to rule.
“I have no intention of compromising that,” he assured, an indication that the CBN, under his watch will not toe the line of disregard to laid down rules.
His promise to give listening ears to all interests in the economy will certainly endear him to members of the Manufacturers Association of Nigeria (MAN) who have repeatedly accused the outgone leadership of the apex bank of shunning their attempts to make input. The Director-General of the MAN, Segun Ajayi-Kadir, for instance, recalled that his association sought to meet with the former CBN governor on several occasions to express their concerns over the BDCs’ management of the forex disbursements. He recalled such efforts were rebuffed. “But we never got a chance, neither did we get any responses to the fact-based submissions we made on manufacturers’ forex application and receipts.
Cardoso will be expected to dig deep and redirect the course of the nation’s apex bank. A more rigorous, logical analysis of micro and macro-economic dynamics in a national economy suggests the new CBN boss is left with little wiggle room to confront the challenges frontally.
Key sector analysts believe that the CBN has intermittently veered into areas that are not its core mandate. It could be recalled that the CBN’s Anchor Borrowers’ Programme, a financing model for small-holder farmers, was part of the last administration’s efforts to boost the nation’s rice production, supply, distribution and consumption value chain. These quirky extra-mandate experiments, according to economic gurus, should certainly cease under a Cardoso-led CBN.
At a fundamental level, Nigeria’s economy is not worse off than most comparable commodity-exporting emerging economies. But as a consequence of opening up the nation’s economy to “all-comers” and dropping all capital controls by the previous administrations, the performance of the economy naturally dipped and requires proactive interventions to resuscitate it. This is Cardoso’s forte.
As part of CBN’s long-term strategy to strengthen the economy, Cardoso would need to evolve initiatives to resolve the underlying factors goading challenges to long-term GDP growth, economic productivity, unemployment and poverty that had pervaded the economy over the past decades.
He would have to grapple with these transformative imperatives without going beyond CBN’s monetary policy mandate which restricts wholesale delving into developmental issues, although the CBN Act (2007), as amended, to some extent recognizes this.
Further, to enhance crucial macroeconomic stability, the emphasis would now shift to supporting improved GDP growth and greater private sector investment; the apex bank would need to leverage monetary policy tools in supporting a low inflation environment while seeking to maintain stability in the exchange rate.
To achieve Financial System Stability, a resilient and stable financial system is imperative for continued growth of the nation’s economy given the intermediation role of financial institutions, to support the needs of individuals and businesses.
Those who have been following the career of the new CBN governor said he is eminently ready for the job.
Olayemi Michael Cardoso hails from Lagos State. He spent his formative years in the vibrant city and received his primary education at Corona School Ikoyi, followed by his secondary education at St Gregory’s College, both within Lagos. His father, Felix Bankole Cardoso, made history by becoming Nigeria’s first indigenous accountant-general in 1963.
The new CBN governor is a distinguished leader in the financial and development sectors with over 30 years of experience in private, public and not-for-profit organisations. With diverse corporate governance experience, Cardoso has also sat on the boards of Nigerian subsidiaries of Texaco and Chevron and chaired the board of EFInA, a financial sector development organisation supported by the Bill and Melinda Gates Foundation.
He served in government as the first Commissioner for Economic Planning and Budget for Lagos State, where he championed the financial reform process which led to the state’s development of independent tax revenues.
Cardoso introduced significant reforms during his tenure that improved the state’s financial autonomy and tax revenue generation. His visionary leadership paved the way for economic growth and transformation in Lagos. He also spearheaded initiatives such as the Medium-Term Expenditure Framework (MTEF), Security Trust Fund, and Public-Private Partnerships (PPP).
In his capacity as a consultant and policy expert, Cardoso has advised and collaborated with major international development organisations including the World Bank, Ford Foundation, UN-Habitat, World Health Organisation and the Swedish Development Foundation.
Cardoso started his banking career with Citibank where he eventually rose to the position of vice president leaving to co-found Citizens International Bank where he was an executive director for eight years.
He is the recipient of several awards including an honorary Doctorate Degree in Business Administration from Aston University, his alma mater, and the Global Distinguished Alumni award from Citi.
Cardoso obtained a Master’s in Public Administration from Harvard Kennedy School where he was a Mason Fellow. Cardoso’s illustrious career paints a picture of a Nigerian banker, chartered stockbroker, and public policy expert, who has diligently served in various capacities both in the private and public sectors. This service has firmly imprinted his influence on Nigeria’s economic narrative.
Olayemi Michael Cardoso, known widely as Yemi Cardoso, has dedicated more than four decades of his life to the public, private, and development sectors. His tenure at Citibank, where he navigated through various senior roles, including the managing director of Citibank Nigeria, is a testament to his prowess.
Under Cardoso’s watchful guidance as the chairman of the Board of Directors of Citibank Nigeria, the bank witnessed unprecedented growth and expansion. His instrumental role in the blossoming of Nigeria’s capital markets is undeniable. Not to mention, his credentials also include a fellowship at the Chartered Institute of Stockbrokers.
Having given his words to the National Assembly members and Nigerians to operate strictly as a professional, and not to dabble into politics, the coast is now set for Cardoso to reposition the CBN for the onerous task ahead. Nigerians will begin to assess his performance going further as his time begins to tick.
•Ganiyu writes from Ikeja.
