Re-Appointment Of CBN Governor: A Plus To Buhari’s Govt

Re-Appointment Of CBN Governor:  A Plus To Buhari’s Govt
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President Muhammadu Buhari has nominated the Central Bank of Nigeria, CBN, Governor, Chief Godwin Emefiele for another term of five years. The Senate has received a communication from the President to that effect and it appears an accomplished deal.

Emefiele was first appointed by the then President Goodluck Jonathan in 2014.

After serving out meritoriously in a tenure which ends in June, he has again been nominated by President Buhari.

Not a few professionals and stakeholders have continued to hail the President’s appointment of Emefiele as salutary and commendable.  

The extension of the CBN governor’s tenure is believed to be due to his giant strides in office, and may well be President Buhari’s first official admission, albeit tacitly, of inheriting something good from his predecessor, Jonathan.

His tenure saw forex stability, with massive deposit in Nigeria’s foreign exchange reserves rising from about $23 billion in October 2016 to nearly $48 billion in June 2018. It had been reported that his policies also significantly assisted Nigeria achieve fast recovery from recession, which was caused by sharp and sustained oil price declines from 2015 through 2017.

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In contrast, Nigeria’s peers are still struggling, with South Africa basically still in recession, while Egypt had to resort to a $12-billion IMF loan.

Under, Emefiele’s watch we recorded the longest month by month decline in inflation from about 19 per cent in January 2017 to about 11 per cent in July 2018, while also helping to avert a major economic crisis with labour groups by innovatively offsetting billions of arrears in salaries, pensions and gratuities.

Furthermore, under Emefiele, the country witnessed a sharp drop in its import bill, which fell from $665 million to $160 million, thereby restoring its current account to a surplus.

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Even in the area of fiscal interventions, the CBN governor sustained large-scale financing of agriculture through the Anchor Borrowers’ Programme, which has disbursed hundreds of billions of naira in small loans to hundreds of thousands of peasant farmers, thereby creating millions of jobs across the country.

Given tight monetary policies, his tenure witnessed unprecedented profits in the banking industry, with GT Bank and Zenith Bank leading the way with record performances. Operational discipline also accounts for significant reduction in bad loans, thereby leading to massive expansion of banking services with financial inclusion rate reaching nearly 64 per cent in 2018, up from only 32 per cent in 2012.

The bank’s intervention in the textile sector was quite legendary. A move that has seen a revamp in a sector that was almost prostrate.

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With all these, Emefiele succeeded in facilitating major improvement in Nigeria’s ranking on the World Bank’s Doing Business Indicators, through the creation of the collateral registry and credit reference bureaus.

AljahzirahNigeria commends the president for making the choice which we believe will be another round of robust leadership at the apex bank.

We equally urge the government to replicate the Emefiele scenario in other instances where square pegs are put in square holes so as to foster discipline and professionalism.    

While we congratulate Emefiele for this well-deserved re-appointment, we urge him to continue relentlessly in the service of country as ever.


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CBN GovernorGodwin Emefiele