Dr. Olayemi Cardoso, the newly appointed Governor of the Central Bank of Nigeria, CBN, has revealed plans to boost the GDP of the nation to $1 trillion in eight years.
Cardoso answered senators’ questions as he was being vetted and confirmed to be the governor of the top bank.
Emem Usoro, Philip Ikeazor, Muhammad Abdullahi-Dattijo, and Bala Bello have all been confirmed as deputy governors.
He gave the assurance that the approved board would implement a number of plans, including short- and long-term objectives to revive the economy.
According to him, steps must be taken to ensure a healthy balance of payments and economic diversification in order to stabilize Nigeria’s exchange rate.
“When you look at the dimension of inflation, we will be doing evidence-based monetary policy. We shall not be making decisions based on a whim.
“We will significantly rebound the infrastructural demand with respect to ensuring that our data gathering capacity is enhanced so we can make decisions based on proper data,” he said.
If I am confirmed as CBN Governor, My first priority will be to take care of the CBN’s operational problems, which are its unresolved commitments.
He stated that they would do everything necessary to guarantee that they worked closely on the fiscal side and ensured that the issue of deficit financing did not become a problem, arguing that Nigeria will not advance if it is unable to manage that side of foreign currency rates.
He added that players must have a strategy in place and that taking these quick action will loosen constraints on the nation’s business environment.
Cardoso noted that attempts to stabilize the economy include, among other things, eliminating oil subsidies and strengthening tax obligations.
“There’s the need to significantly revamp data gathering capacity of the CBN to help in evidence-based decision making by the regulatory house.
“We have to ramp up production of food, that is the aspect the fiscal side will handle and we’ll work very closely with the fiscal side on this, and on energy to make sure that happens quickly.
“The way money has gone in Nigeria on its own has an effect on inflation. And we have seen studies that suggest that money supply has impacted on inflation in the country.
“We also have to work very closely with the fiscal side to ensure that we work on deficit financing,” the former Commissioner for Lagos State Ministry of Economic Planning and Budget said.
The new CBN team equally pledged to ensure a collaborative working relationship with the fiscal policy regulators so as to ensure that things don’t get heated up in the polity.
According to him, there will be a change of mindset in the CBN to promote compliance, maintaining that the apex bank under him will work with the Senate for consultations and adherence to the CBN Act.
Cardoso further underscored the need to do things right, insisting that the bank will not be hijacked by anybody.
“We will not knowingly or unknowingly disobey the law. We are going to endure a culture of compliance in the bank. We are not going to tolerate people not complying. That tone would be fully set from the top,” Cardoso added.
He pledged to bring the best, most qualified advisers, and that the new CBN bank will promote a culture of openness to get the best results.
Also responding to questions from lawmakers, Philip Ikeazu, a Deputy Director, said the new CBN board will “strengthen corporate governance and ensure proper drive of economic policy to maintain price stability and promote a healthy forex.”
He called on the upper chamber to support the apex bank to drive export of locally manufactured goods, and promote corporate governance.
This is just as he commended the federal government for blocking leakages in the economy, and for stopping the fuel subsidy regime.
The CBN team also affirmed that the regulatory body has “strayed significantly over the years”, and that it was committed to returning back on track, and ensuring open and transparent communication with Nigerians.
They assured restoring the dignity of the Central Bank, just as they expressed hope to double economic growth over a 10 year period, as well as expanding the capacity of the economy to produce more “Dangotes and Otedolas.”
During the exercise, the lawmakers bemoaned the woes bedeviling the country’s economy, as they expressed fears at the involvement of the regulatory bank in sectors outside the mandate of the Central Bank Act.
The Senate President, Godswill Akpabio, while addressing the Committee of the Whole, frowned at the involvement of the CBN in construction of classrooms, among others.
He emphasized the need for an apex bank that is focused on providing sound policy and monetary directions for the economy.
Akpabio also regretted that the bank under the former board lost its focus and veered into politics “with money that belongs to Nigerians.”
“No where in the world is a currency changed within one week. But the CBN changed the Naira in 11 days just to sabotage the elections, and because some politicians told him that you can contest for election after all you have money with you,” the Senate President added.