Cardoso’s emergence as CBN governor excites economists

Some economists have described the nomination of Dr Olayemi Cardoso as new Governor of the Central Bank of Nigeria (CBN), as a welcome development.

They told the News Agency of Nigeria (NAN) in separate interviews on Saturday that Cardoso was an experienced and qualified banker who would perform well in his new role.

NAN reports that President Bola Tinubu on Friday approved the nomination of Dr Olayemi Cardoso as the new Governor of the CBN for a term of five years at the first instance, pending his confirmation by the Senate.

Uche Uwaleke, Professor of Finance and Capital market at Nasarawa State University, Keffi, said that Cardoso was eminently qualified for the position.

Uwaleke said that having a permanent person as the governor of the CBN remains crucial for effective management of the monetary policy.

He said that a stable and experienced leadership in CBN was also essential for ensuring effective implementation of monetary policies that drive economic growth and stability.

Prof. Hassan Oaikhenan of the Economics Department, University of Benin, Benin City, said Cardoso’s nomination as the new Governor of the CBN, was not unexpected.

He said, “It falls in line with what has become the tradition of appointing bankers, chartered accountants, stock brokers to head the country’s apex bank.

“This stands in sharp contrast with the practice of appointing seasoned policy-oriented economists to head the institution in keeping with best practices in other progressive and forward-looking countries.

“He can initiate the much needed policy framework to deal with the hydra-headed macroeconomic problems confronting the country.

“These are high and rising inflation, interest rates, and collapsed exchange rate, among others remains to be seen.”

According to him, there are high expectations relating to how well he can articulate and implement policies that are geared toward reversing the very sluggish growth rate of the economy.

“This should be without committing the same blunder of throwing monies at problems in the name of development financing, the same way we saw in the immediate past era.

“Indeed, the appropriateness or otherwise of his appointment as the helmsman of the CBN remains to be seen,” he added.

Oaikhenan said Cardoso’s appointment will instill confidence in the financial sector and contribute to maintaining a favourable economic outlook for Nigeria.

“The CBN is too sensitive an institution to allow a chief executive function in an acting capacity for a long period.

“A substantive CBN Governor sends the right signals to financial markets,’’ he said.

Sheriffdeen Tella, Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun, said, “Dr Yemi Cardoso has experience in both private and public sectors as well as in international finance.

“He is an experienced banker, finance expert and public sector administrator.

“All these are necessary conditions for central banking candidacy, though may not be sufficient.

“Experience in central banking and advanced knowledge in economics are important, if he has at least one of the two, he may be a perfect man for the job.

“But, if he is ready to learn from those on ground and use the products from CBN research, he will still do well.’’

Also, Ndubuisi Nwokoma, Professor of Financial Economics and Director, Centre for Economic Policy Analysis and Research, University of Lagos, described Cardoso’s appointment as well deserved.

Nwokoma advised that the nature of appointments in the Tinubu administration should help address Nigerian economic challenges and implement the country’s security architecture.

“It’s a clear case of continuing in the “good works” of President Muhammadu Buhari.

“There’s need for balancing and inclusion in the management of the Nigerian Society.’’