Can Olayemi Cardoso Truly Turn CBN Around? What We Know

It’s an open secret that the Central Bank of Nigeria (CBN) is plagued with many challenges on different fronts. 

President Bola Tinubu appointed Dr. Olayemi Cardoso, an experienced, tested and trusted banker as the CBN Governor.

But Nigerians are wondering whether Dr. Cardoso can survive with the huge challenges facing the CBN.

Indeed, Nigerians are eagerly waiting to see how the crop of new leaders at the Central Bank of Nigeria (CBN), will stabilise and shake things up.

Dr. Micheal Olayemi Cardoso has been confirmed as the governor of the CBN. His confirmation birthed different analysis, with experts looking at what and what must first be tackled to improve things in Nigeria.

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The challenges he faces include spiking inflation, higher interest rates, a falling bank adequacy ratio and a volatile exchange rate, among others.

These are the challenges which will test his preparedness for the job.

There is no contesting the fact that Cardoso’s appointment is well deserved, having proven his mettle elsewhere.

The man is assuming the leadership of the CBN at a very crucial time in the nation’s economic history.

A Weak Naira

There is no gainsaying that a serious confidence crisis in the foreign exchange market is fuelling an unprecedented speculative onslaught on the Naira.

Also, Cardoso will be expected to commence the recapitalisation of the banking sector.

This becomes necessary, as the value of the Naira continues to drop in the market.

Similarly, the economy is grappling with severe adverse effects of depreciating exchange rate, soaring energy costs and ravaging inflationary pressures, among others.

Huge backlog of foreign exchange obligations needs to be cleared while debt service obligations need to be redeemed.

It is pertinent to enjoin Cardoso and his team to ensure strategic and transparent intervention in the foreign exchange market in order to minimise volatility.

Under this new management, the CBN, may have to look at the import and export (I&E) window.

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Create an autonomous window in the banking system where the currency can trade freely without any encumbrances.

This is necessary to avert the diversion of remittances to other jurisdictions or the black market.

Can Cardoso survive the alleged political interference in the foreign exchange management, among so many others.