Olayemi Cardoso has officially assumed office as the new Governor of the Central Bank of Nigeria (CBN), along with four new Deputy Governors: Nnana Usoro, Muhammad Abdullahi Dattijo, Philip Ikeazor, and Bala Bello. They have all taken over their roles in an acting capacity, pending confirmation by the Senate, according to a statement from the CBN.

The announcement comes on the heels of the forex crisis currently rocking the country, which requires utmost fiscal policies from the central bank to address.

Cardoso is to replace Folashodun Shonubi, who has been serving as the CBN governor in an acting capacity.

President Bola Ahmed Tinubu nominated Cardoso to serve as the acting Governor of the CBN, along with the four new Deputy Governors, on September 22, 2023. Cardoso’s nomination came after the suspension of Godwin Emefiele from office approximately three months before the announcement.

The Cardoso-led team has assumed leadership of the central bank following the resignations of Godwin Emefiele, Shonubu, and the other deputy governors, as confirmed by the CBN in its statement issued on Friday.

“Dr. Olayemi Michael Cardoso, recently nominated by President Bola Ahmed Tinubu, has on Friday, September 22, 2023, formally assumed duty, in an acting capacity, as the Governor of the Central Bank of Nigeria (CBN), pending his confirmation by the Senate. This follows the resignation of Mr. Godwin Emefiele as Governor of the Central Bank of Nigeria (CBN),” the statement said.

“Deputy-Governors-Designate have also assumed duty, in acting capacities, sequel to the formal resignation of Mr Folashodun Shonubi, Mrs Aishah Ahmad, Mr Edward Lametek Adamu, and Dr Kingsley Obiora as Deputy Governors of the CBN,” it added.

Olayemi Cardoso and the other new appointees officially assumed their roles after taking the relevant oaths of office in a brief ceremony held at the CBN’s Head Office in Abuja on Friday, September 2023. They have now begun their responsibilities related to administering monetary and financial sector policies for the Federal Government, as stated in the CBN’s announcement.

The wait for the confirmation of the newly-appointed CBN governor, Cardoso, and his deputies has been linked to the abysmal performance of the naira in the parallel market this week. The gap in decision-making that it created is believed to have impacted the CBN’s supply to the FX market, opening an N217 exchange rate gap between the parallel market and the I&E window. The naira was trading at N955/$1 in the parallel market, and N738/$1 in the Investor & Exporter window on Friday.

Following their assumption, the governor and his deputies are expected to tackle the FX crisis head-on. Although the Finance Minister, Wale Edun, said to boost FX liquidity, Nigeria needs to clear the $6.8 billion in overdue forward payments in the foreign exchange market, sound monetary and financial sector policies by the CBN are expected to ameliorate the situation.

When you are majorly import-dependent, you lose your national-building capacity as a nation. Strategically and economically, Nigeria began to fade in 1983 when many institutional adjustments reshaped our manufacturing and production capabilities. By 1989, Nigeria died economically, with abysmal native ability to grow and advance endogenously. Yes, with SAP (structural adjustment programme), Nigeria lost its economic soul as we allowed the full vagaries of globalization to nip our indigenous industries. People, SAP sapped Nigeria and we have not recovered.

In Ovim (Abia State), the top five crops are yam, cassava, melon, maize and pumpkin. Take a look at the top 3 crops in your village. Then check the national agricultural policy. What you would notice is this: in more than 90% of communities in Nigeria, the national agricultural policy is not structured to help them. Rather, the policy is mainly designed to boost export-focused crops. So, you have cocoa, rubber, sesame seed, and all kinds of seeds no one uses in homes and kitchens in Nigeria.

But why do we do that? We have lost the ability to decide on what to farm since we have a bill to pay at the international market. In other words, because of the pressure of balance of trade and payment, our national policy is now tuned to earn US DOLLARS to settle those bills. As that becomes the order of the day, what Ovim farmers need becomes secondary, and what becomes the focus of the government is how to grow special seeds which can bring in dollars.

That mindset precipitates across our national economic strategy. Only the United States has the special printer to print US dollars; others have to earn the dollars. And to earn dollars, you need to produce things which people with US dollars need. They do not need pumpkin (ugu) and that means Nigeria does not care. And because Nigeria does not care, a vicious circle is triggered where those farmers never rise to advance, affecting the nation economically – and destroying the national currency, the Naira.

So, as Naira fades to N1,000/$, it will not stop there. Yes, there is nothing that can stop it going to N2,00/$ until you pay attention to local factories and warehouses (the modern and the old). Yes, you need to earn the dollars and also boost the local communities to produce what they need. Do those and we can dance as a nation.

Someone needs to reset Nigeria economically. Those local crops in Ovim, factories and warehouses (old and modern) in Aba, Kano, Ibadan, Uyo, etc are the variables.

When you are majorly import-dependent, you lose your national-building capacity. Economically, Nigeria began to fade in 1983 when many institutional adjustments reshaped our manufacturing and production capabilities. By 1989, Nigeria died, economically. Yes, with SAP (structural… pic.twitter.com/6z1A0IpDZZ

— Ndubuisi Ekekwe (@ndekekwe) September 22, 2023

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Comment 1: Nigerians erroneously attribute our failure to the structural adjustment programme. This is not so.

Upon decolonisation, several countries across Africa took caught thr fever of structuralism which had taken root in Latin America (especially Brazil and Argentina) and adopted ISI policies. We set up numerous state owned enterprises in a bid to find substitutes for import and there by create jobs and keep the naira strong….since it has been observed the the relationship which involved exchange of raw materials for finished products was unhealthy for the exporters of raw materials…prebisch singer thesis.

Nigeria as well several other countries in the southern hemisphere unfortunately went into industries that at that point didn’t match their factor endowment. There were no skilled hands to even on the textile factories that littered the country. These SOEs where doomed to fail for the inception since there was an obvious misalignment, and there has not been any deliberate attempt by succeeding governments to deliberately upgrade our endowment factor in line with targeted industries. SAP was a consequence of the failure of our structural policies. Those we borrowed money from had to recover their money since our industries had failed.

My Response: “Nigerians erroneously attribute our failure to the structural adjustment programme” -I was waiting for you to support this but you did not.

“We set up numerous state owned enterprises” – that may not be true. Per capita, Nigeria was advancing in industrialization during colonization than post-colonization. From Unilever to First Bank, Flour Mills to Delta Steel Company, etc, Nigeria established indigenous great companies. There is a difference between having a fintech company and having the Aba Glass Industry or Kano textiles on FX,

The core impact of SAP was that it wiped out the real income of Nigerians as Naira depreciated. With that, everyone became poor. And because of that, investing in anything more than 90 days became risky. Magically, no one wanted to build industries or factories because those became risky. With that, entrepreneurial Nigerians moved into “banking” since factories are no-go areas. From GTBank to Zenith Bank to Access Bank – the new generation banks, most were born around 1989-1992 as it became a great business of trading to import since no one was making things. As that happened, the local industries collapsed. That was how SAP killed the economy and turned the nation into a trading economy where everyone is adding his 3% with none doing anything of value. It continues till today with fintech: receive N100k as a merchant, they take their 3% from it. Shekinah