The Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, has acknowledged that the quasi-fiscal policies implemented by his predecessor, Godwin Emefiele, injected N10 trillion into the economy through various intervention programs.
Speaking as the special guest of honor at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria in Lagos on Friday, Cardoso acknowledged that recent events had cast the CBN in a negative light, but he emphasized their commitment to rectifying the situation.
Addressing the challenges faced by the CBN in recent years, Cardoso attributed them to factors such as corporate governance failures, diminished institutional autonomy, a deviation from the core mandate of the bank, unorthodox use of monetary tools, and an opaque foreign exchange market. He highlighted the CBN’s engagement in quasi-fiscal activities, noting that over N10 trillion had been injected into the economy through initiatives spanning sectors like agriculture, aviation, power, and youth development.
According to Cardoso, these activities diverted the CBN from its core objectives and led it into areas where expertise was limited. He pledged to address the institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies during his tenure as the CBN governor.
“Under my leadership, the Central Bank of Nigeria will vigorously address these issues. We will tackle institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies. We assure investors and the business community that the economy will experience significant stability in the short-to-medium term as we recalibrate our policy toolkits and implement far-reaching measures,” he stated.
