Deal with macroeconomic problems – Economists task new CBN Governor Cardoso
Some economists have described the nomination of Dr. Olayemi Cardoso, the new Governor of the Central Bank of Nigeria (CBN), as a welcome development.
According to NAN, the economists expressed optimism that Cardoso would deal with increasing inflation and other monetary policy challenges.
Uche Uwaleke, Professor of Finance and Capital Markets at Nasarawa State University, Keffi, said Cardoso was eminently qualified for the position.
Uwaleke said that having a permanent person as the Governor of the CBN remains crucial for effective monetary policy management.
He said stable and experienced leadership in CBN is also essential for ensuring the effective implementation of monetary policies that drive economic growth and stability.
Prof. Hassan Oaikhenan of the Economics Department, University of Benin, Benin City, said Cardoso’s nomination as the new CBN governor was not unexpected.
He said: “It falls in line with what has become the tradition of appointing bankers, chartered accountants, and stock brokers to head the country’s apex bank.
“This contrasts sharply with appointing seasoned policy-oriented economists to head the institution in keeping with best practices in other progressive and forward-looking countries.
“He can initiate the much-needed policy framework to deal with the country’s hydra-headed macroeconomic problems. These are high and rising inflation, interest rates, and a collapsed exchange rate, among others.”
According to him, there are high expectations relating to how well he can articulate and implement policies that are geared towards reversing the very sluggish growth rate of the economy.
“This should be without committing the same blunder of throwing monies at problems in the name of development financing, the same way we saw in the immediate past era.
“Indeed, the appropriateness or otherwise of his appointment as the helmsman of the CBN remains to be seen,” he added.
Oaikhenan said Cardoso’s appointment will instill confidence in the financial sector and maintain a favourable economic outlook for Nigeria.
“The CBN is too sensitive an institution to allow a chief executive to function in an acting capacity for a long period of time. A substantive CBN Governor sends the right signals to financial markets,” he said.
Sheriffdeen Tella, Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun, said: “Dr. Yemi Cardoso has experience in the private and public sectors as well as in international finance. He is an experienced banker, finance expert, and public sector administrator.
“All these are necessary conditions for central banking candidacy, though they may not be sufficient. Experience in central banking and advanced knowledge of economics are essential; if he has at least one of the two, he may be perfect for the job.
“But, if he is ready to learn from those on the ground and use the products from CBN research, he will still do well.”
DAILY POST recalls that on Friday, President Bola Ahmed Tinubu appointed Cardoso as the new Governor of the CBN for five years in the first instance, pending his confirmation by the Senate.
Full Story: https://dailypost.ng/2023/09/16/deal-with-macroeconomic-problems-economists-task-new-cbn-governor-cardoso/
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