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Cardoso to clear dollar backlogs, suspend intervention programmes

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Dr. Olayemi Michael Cardoso e1695028762641

Olayemi Cardoso, the recently appointed Governor of the Central Bank of Nigeria, has expressed his commitment to addressing the apex bank’s outstanding foreign exchange obligations as a top priority in the immediate future.

He made this statement on Tuesday during the Senate members’ screening session.

Cardoso pledges to bolster transparency, address corporate governance issues, and guarantee the autonomy and integrity of the bank, instilling confidence.

Furthermore, the newly installed CBN governor has expressed his plan to ensure price stability, shift towards evidence-based monetary policies, and put an end to the unconventional monetary measures introduced by his predecessor, all to boost the value of the naira.

As the nation contends with a decline in economic indices and the Nigerian Naira’s alarming proximity to the 1,000/$ mark on the parallel market, Cardoso’s confirmation assumes significant importance.

According to Cardoso, the immediate plan to stabilize the naira will be for the apex bank to settle existing financial obligations and make “transparent rules.”

Explaining how to tackle what he referred to as an ‘operational challenge,’ he stated:

Folashodun Shonubi, who served as the Acting CBN Governor until recently, made a significant announcement on September 6, 2023. He stated that negotiations between the apex bank and commercial banks regarding dollar debts had been successfully concluded. Shonubi assured that all outstanding forex exchange backlogs would be fully addressed within the coming one to two weeks.

Speaking further, the newly confirmed CBN governor has articulated a clear strategy to address the country’s ongoing issue of inflation.

In his statement, he emphasized the importance of implementing policies that are grounded in “empirical evidence“ and “data-driven analysis.”

He said,

Cardoso added that avoiding deficit financing would tackle money supply issues.

In the screening process, Cardoso made it clear that the central bank’s independence and credibility should be reinstated through a renewed focus on its core mandate and the promotion of a culture that prioritizes compliance, stating that the CBN will not be used to finance the fiscal deficit of the federal government.

As of October of the prior year, around N9 trillion had been allocated as intervention funds by the central bank.

The bank had said that about N3.7tn had been repaid by beneficiaries while over N5tn was not yet due for recovery.

On unhealthy bank charges, the banker said that the team would review the situation and come up with the required position.

Earlier, ThePressNG reported that the Senate has confirmed the nomination of Dr. Olayemi Cardoso as the next Governor of the Central Bank of Nigeria (CBN).

This follows the screening by the Upper Chambers of the National Assembly. The Senate also confirmed the nomination of the four Deputy Governors of CBN.

The four deputy governors whose appointments were confirmed by the Senate are Emem Usoro, Muhammad Dattijo, Philip Ikeazor, and Bala Bello.

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