Godwin Emefiele, CBN Governor |
Tectono Business Review gathered that the President of the
Federal Republic of Nigeria, Muhammadu
Buhari, on Thursday wrote to the Senate to approve Godwin Emefiele’s
reappointment as the CBN governor. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html President Buhari, in his letter to the
Senate, sought legislative approval of a second tenure for Emefiele, whose
current tenure expires on June 2, 2019.
The President of the Senate, Dr. Bukola Saraki, read Buhari’s letter
to members at the plenary on Thursday.
In his reaction to Emifiele’s
appointment, the Managing Director and Chief Executive Officer, Polaris Bank, Tokunbo Abiru, said, “The re-appointment of the CBN governor for another term of
five years is a positive development for our economy. The economic outlook
remains positive as this adds fillip to the continuity of current
macro-economic policies initiated by Emefiele. The positive interventions in
the agriculture, real sector and foreign exchange stability give confidence
that the economy will continue to grow.”
Also, the Chairman of Chartered
Institute of Bankers of Nigeria, Abuja Chapter, Professor Uche Uwaleke, referred to Emefiele’s appointment as a
positive development for the Nigerian economy, adding that stakeholders in the
economy would have confidence in the consistency of the monetary policy. “Emefiele’s appointment is a good omen for the capital
market. It is one development that speaks to policy consistency and will
further consolidate macroeconomic stability, especially with respect to
exchange rate and inflation. Investors, both domestic and foreign, can have
some degree of confidence in the direction of monetary policy, which is positive
for the capital market.
“One thing is now certain:
That the interventions by the CBN in critical sectors of the economy,
especially agriculture and non-agric based SMEs will continue. These will rub
off positively on economic recovery efforts, especially now that the CBN under
Emefiele has signalled an accommodative monetary policy stance. It is equally
positive for financial systems stability. So, I expect a positive reaction,” he said
In his comment, the
Registrar, Institute of Finance and Control of Nigeria, Godwin Eohoi, said as one of the major actors who worked towards
taking Nigeria out of recession, the apex bank boss understood what would be
needed to consolidate the growth trajectory. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
He also said there was a need for the
apex bank boss to ensure the reduction of interest rate is to make the cost of
funds cheaper for businesses. “There is a need for the
intensification and effective monitoring of the interventions, in particular,
the Anchor Borrower Programme. Emefiele should also focus on ensuring increased
access to credit by SMEs and generally fostering a low-interest rate
environment with the support of fiscal authorities, He should focus more on
intervention programmes in the agricultural sector, textile and other economic
stimulating and job creation sectors,” he added.
Moreso, a former President, Association
of National Accountants of Nigeria, Dr.
Sam Nzekwe, said, “It
is a good development because, given the way he has worked for five years, I
think he is a competent man. He has made
sure that he has so far stabilised the exchange rate; he has managed the
monetary authority very well given the kind of very difficult economy we have. I
think he has done very well. He performed above average. I think it is a good
thing to give him a second chance.”
However, the
Chairman, TAF, Debo Ajayi, who is
also an economist, said he had not really considered the governor to have
performed well. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html He also described some of the actions
of the CBN as confusing because he got involved in fiscal policies instead of
focusing on monetary policies, which was his key role.
Ajayi said, “Maybe
things could have been worse than it actually is but also, I really do not see
the CBN managing the economy very well, and yet, the exchange rate seems to
have stabilised, but it is still not where it ought to be in terms of the
valuation of the naira.
“So, I have not seen any
major initiative from the CBN, but evidently, his boss may be looking at it
from an angle we are not looking at it from that is making him to recommend
him. However, from this side, I don’t see the governor to have done an
exceptional job for which he is being recommended for another five years.
“But I do commend them from
time to time for some of the initiatives. For instance, the recent one on
access to credit in the creative industry is a fantastic one, better late than
never. We see some initiatives sometimes like in the area of agriculture, but
we have not seen these translate to tangible impact on the masses.”
A professor of
Economics at the Olabisi Onabanjo University, Ago Iwoye, Professor Sheriffdeen Tella, said President Muhammadu Buhari
re-appointed Emefiele because he felt that he had been able to maintain stable
exchange rate and ensured that the inflation rate did not go haywire. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
The don, who, however, expressed
reservations about the CBN’s direct intervention in the agricultural and the
real sectors, added that Emefiele must have earned his re-appointment having
been able to help the Buhari’s administration to stabilise the nation’s
monetary policy, as it had envisaged it to be.
He said, “I
think the President re-appointed him because he is happy with what he has done
in the monetary sector. He has stabilised the foreign exchange rate and managed
the inflation rate. These must have fallen in line with the President’s policy,
but I don’t believe the CBN should be directly involved in giving loans to farmers
and those in the real sector of the economy.”
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