Godwin Emefiele's Assumes Duties Of CBN Governor While Sanusi's Suit Pending In Court
Godwin Emefiele takes charged of the Central Bank of Nigeria (CBN) on Tuesday, June 3, as the tenure of his suspended predecessor Sanusi Lamido Sanusi expired on May 31.
President Goodluck Jonathan submitted Emefiele’s candidacy to the Senate for confirmation on February 20, the same day he suspended Sanusi over allegations of the 'financial recklessness and gross misconduct' of the CBN. The Senate confirmed Emefiele's appointment on March 26.
Sanusi rejected the accusation insisting he was removed for highlighting alleged widespread corruption in the oil and gas sector, and appealed his suspension in court. Last week his lawsuit was transferred to another court.
Until last Friday, Emefiele was the Group Managing Director of Zenith Bank Plc, a position he held for about four years.
Analysts believed that ex-governor Sanusi has left behind a strong legacy of excellent economic management. The new governor’s primary objective will be to preserve the gains in price and exchange rate stability and, therefore, maintain the previous regime’s tightening stance.
Many experts also believe that the new governor will move the CBN to the next level going by his track record as an achiever at the Zenith Bank Plc.
However, Emefiele will soon have to face the challenged that a pre-election and election years normally bring. Extra-budgetary spending arising from electioneering expenses will most certainly lead to excess cash in circulation and this will ultimately cause inflation and put pressure on the naira, while myriads of other monetary challenges that will pose threats to the economy will come forth.
Unemployment, especially among young people, is another problem that Emefiele is expected to solve.
"My message to him [Emefiele] is that he should stop focusing on financial variables and financial markets. CBN should broaden its view to focus on the economy. It should focus on real economic growth, spending growth and household spending and consumption," Dr. Ayo Teriba, the CEO of Economic Associates, a Lagos economic consultancy, told This Day. "A situation where the CBN just focuses on inflation and exchange rate when unemployment level has doubled, will leave Nigeria as the loser," he added.
An economic analyst and Managing Director of Financial Derivatives Company, Bismarck Rewane, noted that although the macroeconomic environment had been relatively stable "the conflicting trends of core and headline inflation since January 2014 will have to be put in perspective." He also expressed concerns over "the eroding fiscal buffers".
*Correction: Godwin Emefiele has assumed office on June 3 but not June 2 as was reported earlier.
Source: Legit.ng
