Emefiele: a tenure defined by controversy, unorthodoxy
..PDP Senator: We’re Rubber Stamp, Emefiele’s Suspension Is An Indictment
Perpetrated Colossal Damage At CBN, Says Osinbajo’s Former Spokesman
Godwin Emefiele who was until last night the substantive governor of Nigeria’s Central Bank is arguably the most controversial occupant of the exalted position.
Although he did not betray his unorthodox instincts early, he fought against both local and foreign investor groups in fierce battles.
The former chief executive of Zenith Bank Plc took up his post at the Central Bank of Nigeria in June 2014, a year before President Muhammadu Buhari came to power.
He was controversially reappointed for a second five-year term in May 2019 that was due to end in June 2024.
The governor was one of the most influential members of Buhari’s government during which the central bank made significant interventions in the economy, including propping up the naira, lending unprecedented sums to the government and extending credit to multiple sectors.
Critics slammed the central bank governor for undue attention to development finance and excessive regulation of banks at the expense of price stability.
The lion’s share of a 1 trillion naira ($2.1-billion) loan it extended to rice farmers, under the so-called Anchor Borrowing Programme, was not repaid.
He also came under fire for subjecting banks to contradictory regulations.
For instance, whereas lenders must hold 32.5% of deposits as reserves — far more than their counterparts in South Africa and Kenya, as the regulator battles to contain inflation — banks are being forced to extend 65% of their deposits as loans to stimulate credit.
The central bank governor also left the interest rate unchanged, well below the annual inflation rate for too long, critics contend.
When the bank began to tighten last May it was unable to rein in consumer prices until they skyrocketed to an 18-year high of 22.% in April.
Emefiele even made a highly visible, if short-lived, foray into party politics in May when he asked a federal court to permit him to remain in charge of the CBN while seeking the ruling party’s nomination in presidential elections scheduled for next month.
He dropped those ambitions after Buhari ordered ministers and political appointees wishing to run for office to resign.
His most controversial move as central bank governor came just before the Nigerian presidential elections, with his demonetization policy.
His attempt to replace old naira notes with new ones unexpectedly resulted in shortages, hobbling day-to-day business in the cash-dominant economy.
Politicians, including President Tinubu, accused him of fostering the unpopular policy to damage his candidacy.
Some state governors challenged the policy in court and a ruling, the Supreme Court nullified the Feb. 10 deadline set by the governor to phase out the old notes. It extended the deadline to year-end.
Perpetrated Colossal Damage At CBN, Says Osinbajo’s Former Spokesman
Meanwhile, Laolu Akande, former spokesperson for the immediate past Vice President, Prof. Yemi Osinbajo, has described the alleged damage the suspended Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, perpetrated at the apex bank as colossal.
Akande also said the suspension and investigation of Emefiele were long overdue and should be supported by any Nigerians who value integrity.
He stated this via his Twitter handle on Saturday, saying that Emefiele’s “shenanigans” were detrimental to Nigerians.
He wrote, “It was about time d CBN Governor faced suspension & investigation. All people of goodwill & those who value integrity, irrespective of political leanings would be thankful for this development.
“Emefiele was given a long rope, but he failed to redeem himself. His shenanigans & the colossal damages he perpetrated at the CBN were to the utter detriment of the Nigerian people. This is not even about cashless policy, but apparent corruption especially in the dual exchange rate policy which never made sense. What a sigh of relief!”
PDP Senator: We’re Rubber Stamp, Emefiele’s Suspension Is An Indictment
The Senator who represents Adawama South, Binos Yeroe, says he agrees with critics that labelled the 9th National Assembly as a rubber stamp parliament.
Critics labelled the 9th parliament as such due to what has been regarded as frequent approval of requests of the executive.
Speaking at the 9th Senate valedictory session on Saturday, Yeroe said those criticising the 9th Assembly as a rubber stamp of the executive were right.
He said how the N22.7 trillion CBN Ways and Means Advances to the Federation was approved by the National Assembly and justified the rubber stamp label.
He said, “I agree with those who say the ninth Senate is rubberstamped. Furthermore, the suspension of the governor of the Central Bank of Nigeria, Godwin Emefiele and subjecting him to investigation is a mild indictment of the National Assembly. This is so because if we had done our oversight duties properly, we would not have gotten to this level.
“I hope the 10th Senate will take its job as the watchdog of the executive more seriously.”
However, Senator Uba Sani (APC, Kaduna), who has now been sworn in as the Governor of Kaduna State, disagreed, saying people were wrong in tagging the National Assembly as rubber-stamp parliament.
