CBN Governor Blames Emefiele for N10tn Quasi-Fiscal Spending

The Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, has criticised his predecessor, Godwin Emefiele, for engaging in quasi-fiscal activities that pumped over N10tn into the economy through various intervention programmes.

Cardoso said that these activities deviated from the core mandate of the CBN and hindered its institutional autonomy, corporate governance, and policy effectiveness.

Cardoso made these remarks on Friday at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria in Lagos, where he was the special guest of honour.

He said that the CBN had strayed from its core mandates of price stability, exchange rate stability, and financial system stability, and had ventured into fiscal activities under the cover of development finance activities.

He said that the CBN had intervened in almost different sectors ranging from agriculture, aviation, power, youth, and many others, without clear expertise or impact.

He said that these interventions had also created an inefficient and opaque foreign exchange market that hindered clear access, and a lack of clarity in the relationship between fiscal and monetary policies, among other challenges.

Cardoso, however, promised that the CBN under his leadership would vigorously address these issues and restore the credibility and efficiency of the apex bank.

He said that the CBN would tackle institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies. He also assured investors and the business community that the economy would experience significant stability in the short-to-medium term as the CBN recalibrates its policy toolkits and implements far-reaching measures.

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