“Fall From Grace”: Emefiele’s 5 Strange Policies That Led to His Fallout With Tinubu
Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.
Some policies of the embattled former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, ultimately forced him into his current travails.
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Indeed, life is full of surprises and fate twists as long as a person lives and Emefiele's story is not farfetched from the foregoing.
Having risen to prominence through an almost miraculous means, he became a mighty force to contend with in Nigeria’s financial landscape.
Feared and revered at the same time but Emefiele’s economic policies were ones to be wary of in Africa’s largest economy.
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Today, the all-powerful financial emperor lies at the mercy of the federal government headed by President Bola Ahmed Tinubu and the many toes he had stepped on as the former CBN governor.
This article however explores some of the policies that led to Emefiele's current ordeal under Tinubu's government:
Poverty, rising inflation
Under Emefiele's administration, Nigeria’s inflation kept rising yearly (8.05 percent in 2014 through 9.01 in 2015, and eventually 18.85 percent in 2022 and an all-time high of 27.33 percent in October 2023, according to the National Bureau of Statistics report) and with the naira losing its value.
The NBS data showed that Nigeria became poorer under its financial rule. The NBS reported that some 133 million (about 63%) Nigerians were multidimensionally poor. This meant that the poverty was not just in monetary terms but less access to other basic amenities.
Dr Moses Ogah, a former banker and economist at Joseph Sarwuan Tarka University Markurdi, maintained that under Emefiele's watch, Nigeria’s inflation rose to hyperinflation; from a single digit of eight percent to an all-time high of about 28 percent.
Although factors like the COVID-19 pandemic, and the Russia-Ukraine war cannot be exonerated from being culprits in Nigeria’s economic misfortune, Ogah, disclosed further that the direction of the monetary policies from the central bank also led inflation to rise from a single digit the governor met it in 2014 to double digits currently experienced in the country.
Emefiele delved into politics
Beyond his monetary policies, that sank Nigeria’s economy for almost seven years, Emefiele became famous for his political involvement, especially in the run-up to the 2023 general elections. The now humbled Emefiele violated Nigeria’s Constitution which states that “a Central Bank governor, to protect the independence of the Central Bank, cannot participate in partisan politics, when he attempts to vie for the presidency in May 2022.
Ahead of the 2023 presidential poll, he approached a court where he sought an order that would permit him to run against Tinubu, Vice-President Yemi Osinbajo, and several other notable politicians for the presidency without resigning and this added to his predicament.
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Naira redesign
In October 2022, the CBN rolled out new monetary policies, including a naira redesign, limits on cash withdrawals, and the introduction of a cashless economy.
The currency redesign was heavily criticised as political and an effort to combat the now President Tinubu and frustrate his bid to become the next president of Nigeria. While the move was celebrated by the unsuspecting citizens at first, it came under serious criticism when life became unbearable for Nigerians as they spent money to get cash at hand.
Political pundits believed that Emefiele introduced more harsh economic policies, especially with the naira redesign policy and the cashless economy which later made him fall out of grace in the sight of Tinubu and the APC camp backing Tinubu's presidency.
Violation of court order
The CBN under Emefiele disobeyed the Supreme Court order that the old naira notes should remain legal tender. Nigerians waited for the CBN and the former President Buhari’s position, but this was not forthcoming, hence the citizens became reluctant to accept the old notes as a means of payment, a situation that further heightened the hardship in the country.
Multiple exchange rate system
Nigeria’s apex bank under Emefiele’s leadership operated a confusing multiple exchange rate system. This practice left many foreign investors confused and uncertain, creating room for corruption and inefficiencies. President Tinubu however stopped the multiple exchange rates during his inauguration on May 29, 2023.
Fall from grace
In a twist of fate, Emefiele fell out of favour with the Tinubu administration when he was suspended on June 9, 2023, and was directed to immediately hand over the affairs of the CBN to the Deputy Governor (Operations Directorate). At this point, the fall from grace began.
Buhari explains why he didn’t sack Godwin Emefiele as CBN governor
Earlier, Legit.ng reported that former President Muhammadu Buhari has revealed why he did not sack the immediate past governor of the Central Bank of Nigeria (CBN) Godwin Emefiele during speculation about his presidential ambition.
Buhari said Emefiele never discussed any intention to contest the 2023 presidential election with him.
This was contained in a memoir titled “Working with Buhari: Reflections of a Special Adviser, Media and Publicity (2015 – 2023)” made public on Tuesday, January 16.
'Emefiele is Nigeria’s worst CBN Governor,' Moghalu
Legit.ng also reported that former CBN deputy governor, Kingsley Moghalu, said Emefiele “is without debate the worst and most damaging central bank governor in Nigeria’s history”.
Moghalu in a tweet said embattled Emefiele is “incompetent and ill-prepared for the role”.
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Source: Legit.ng
