Cardoso Reveals: Emefiele Injected N10 Trillion into Economy via Quasi-Fiscal Measures

In a recent statement, Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria, outlined key steps to propel the nation’s economy towards the ambitious $1 trillion mark set by President Bola Tinubu. Speaking at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria, Cardoso emphasized the need for Deposit Money Banks to augment their capital base to meet the demands of the projected economy.

Addressing concerns about the central bank’s recent performance, Cardoso acknowledged challenges such as negative perceptions, corporate governance issues, and deviations from the core mandate. He attributed these issues to factors like inefficient forex rules and a venture into quasi-fiscal activities, noting that the previous administration, led by Godwin Emefiele, injected N10 trillion into the economy through various intervention programs.

Cardoso assured stakeholders that under his leadership, the Central Bank would focus on restoring corporate governance, strengthening regulations, and implementing prudent policies to address institutional deficiencies. He also highlighted the importance of price stability to protect the livelihoods of Nigerians.

Discussing recent economic measures, Cardoso mentioned the removal of the petrol subsidy, the adoption of a floating exchange rate, and other policies aimed at enhancing investor confidence and attracting capital inflows. He acknowledged the challenges posed by a fluctuating exchange rate and pledged transparency and fairness in the bank’s operations.

Despite acknowledging the resilience of Nigeria’s financial sector in 2023, Cardoso stressed the need for further strengthening to face future challenges. He emphasized ongoing efforts to address issues like the widening gap between official and parallel market rates.

Key figures at the event, including the President/Chairman-of-Council at the CIBN, Ken Opara, and the Chairman of the Body of Bank Chief Executive Officers, Ebenezer Onyeagwu, expressed optimism about the positive impact of recent monetary and fiscal policies. They highlighted the progress made so far, acknowledging challenges like inflationary pressure and the need for continued reforms to boost non-oil export revenue and attract investments.

As the Central Bank navigates these challenges under Cardoso’s leadership, stakeholders remain hopeful that the measures implemented will contribute to economic stability in the short-to-medium term.