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What Nigeria may have bargained for with Emefiele’s reappointment
Godwin Emefiele’s reappointment as CBN Governor has surprised Nigerians, amidst earlier reports that a different candidate might succeed him.
Globally, central banks (CBs) are described as the supreme monetary authority and heartbeat of the economy, saddled with the responsibility of regulating financial and macroeconomic stability. The first central bank in the world is the Swedish National banks (Sveriges Riksbank), which was established in 1668.
Since inception, central banks have taken up the central task of formulating monetary policies and reforming banking sectors to boost financial conditions and reduce vulnerability.
Basically, the CBs adopt monetary policy instruments such as money supply and interest, targeted at price stability (inflation) and the reduction of unemployment in any economy. Unlike the U.S Federal Reserve which was established in 1913, the Central Bank of Nigeria (CBN) was established by the CBN Act of 1958 and swung into full operation on the 1st of July, 1959.
CBN’s Governors and five-year tenure – Specifically, the regulatory objectives of the CBN include maintaining external reserves of the country, promoting monetary stability, sound financial environment, and acting as a banker of last resort and financial adviser to the Federal Government.
Since the establishment of CBN, a total of eleven (11) Governors have been at the helm of affairs of the institution. Note that each of the CBN Governors introduced their unique policy reforms and measures. However, apart from Alhaji Abdulkadir Ahmed, most of the other CBN Governors spent only 5 years (or less) single tenure in office.
The first CBN Governor was Roy Pentelow Fenton (1958 – 1963). Other CBN Governors that came after him include:
- Alhaji Aliyu Mai-Bornu (1963 – 1967)
- Dr. Clement Nyong Isong (1972 – 1975)
- Mallam Adamu Ciroma (1975 – 1977)
- Mr. O. Ola. Vincent (1977 – 1982)
- Alhaji Abdulkadir Ahmed (1982 – 1993)
- Dr. Paul Agbai Ogwuma (1993-1999)
- Chief (Dr.) Joseph Oladele Sanusi (1999 – 2004)
- Prof. Chukwuma C. Soludo, (2004 – 2009)
- Mallam Sanusi Lamido Sanusi, (2009 – 2014)
- Mr. Godwin Emefiele, (2014 – To Date)
From Soludo to Emefiele, how the economy has performed – The news about the reappointment of the current CBN Governor, Godwin Emefiele, has taken Nigerians by surprise, amidst earlier reports of his possible replacement with another potential candidate. While some Nigerians regarded the news as a good move from the Presidency, others are sceptical of Emefiele’s reappointment because they’re not quite impressed with his first tenure in office.
Note that this will be the first time in many decades that a CBN Governor will be returned to serve another five years.
As earlier stated, most CBN Governors in the past typically spent a single tenure of 5 years or less. This is why many people did not see Emefiele returning for a second term.
To join the debate, a cursory look at the performance of the most recent CBN Governors became extremely important.
Prof. Chukwuma C. Soludo (May 2004 – May 2009) – The most strategic reform under Soludo’s era as the CBN Governor was the banking sector reform in 2004. Upon assumption of office, Soludo pushed for the recapitalisation of commercial banks from a minimum capital base of N2bn to N25bn.
Analysis of the data obtained from the CBN shows that the Nigerian economy grew an average of 6.46% in 4 years under the era of Soludo. This shows that the Nigerian economy recorded accelerated growth under the Soludo’s era. Specifically, 4 years average inflation stood at 11.23%, while the exchange rate of the naira was an average of N126.30 per dollar for nearly 4 years.
Furthermore, the 4 years average of monetary policy rate (MPR) under Soludo was 11.87%, with an average lending rate of 19.29%.
However, the Soludo’s tenure ended with a reported Northern Oligarchy putting pressure on the then President Umaru Musa Yar’Adua to install someone from the North as CBN Governor. Sources confirmed then that the North complained of being deprived of CBN‘s exalted position. Consequently, Sanusi Lamido replaced Soludo.
HRH Sanusi Lamido Sanusi (2009 – 2014) – The former Governor inherited Soludo’s banking sector reforms and further rejigged the existing banking structure and entire financial system in the country. Some highlights of Lamido’s era are listed below:
- The economy grew by a 4 year average of 6.05%
- Inflation was on a 4 years average of 11.04%
- Exchange in 4 years was an average of 154.74/$
- 4 years average inflation stood at 9.44%
- Highest MPC was 12%
- Average 4 years MPC was 12%
- Average 4 years lending rate was 9.44%
- Savings rate 4 years average was 2.12
However, former President Goodluck Jonathan controversially sacked Sanusi and replaced him with the current CBN Governor, Godwin Emefiele.
Godwin Emefiele, (2014 – To Date) – By law, Emefiele’s appointment is meant to expire next month. However, the announcement of his reappointment makes it the first time a CBN Governor will be running two terms in office since the advent of Democracy in 1999. Earlier today, Nairametrics highlighted the positive and negative effects of Emefiele’s reappointment.
Below are the highlights of the performance of the Nigerian economy under Emefiele’s watch:
- The economy grew at a 4 year average of 0.95%
- Inflation was a 4 year average of 12.68%
- The exchange rate was a 4 years average of 264.66/$
- MPC was an average of 12.82%
- Highest MPC was 14%
- Savings rate was an average of 3.38%
- Lending rate in 4 years average 12.82%
In the meantime, reactions have continued to trail Emefiele’s reappointment. Whether this is a good or bad move by the Presidency, the Nigerian economy might just get what it has bargained for.
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Top 10 most innovative companies in tech in 2021
The top 10 most innovative companies extensively adopted AI as part of their innovation strategy.
In every sector across the globe, every company was forced to adapt to the change that came with the pandemic with some companies downsizing and adopting the work from home policy. Some businesses failed while some adapted and have since offered more innovative solutions that have impacted the world.
The pandemic demonstrated the importance of innovation and this innovation was visible in the pharmaceutical industry as they joined their counterparts in the technology and software industry.
The top 10 most innovative companies extensively adopted AI as part of their innovation strategy, Alphabet proves this with innovations in Android and autonomous driving venture Waymo. Amazon has Alexa and AWS, Apple has Siri and a virtual workplace in its iOS platform, and Microsoft has evolved from solely offering software to offering AI and cloud services.
Here are the top 10 innovative companies according to BCG
Apple
Apple has become one of the most valuable brands in the world. This is largely due to its diversification strategy that has caused the company to expand into digital and subscription services beyond the iPhone. Apple also experienced large sales in its mobile devices and now they are rumoured to be producing a self-driving car.
Alphabet
Alphabet Inc. is the parent company of Google that gives ambitious projects the resources, freedom and focus to make their ideas happen. The company essentially separates Google’s profitable businesses, such as Google Search and YouTube from their riskier and more innovative projects. This can be seen in some of its projects like, Google Ventures and Google Capital that provides funding for bold, new companies, Fiber that focuses on providing super-fast internet for a more affordable price and many other amazing projects.
Amazon
Retail giants, Amazon ranks 3rd on this list. The company benefited greatly from the pandemic due to the surge in demand as more consumers turned online following the closure of stores globally. Amazon is also innovating through its AI-powered bot Alexa.
Microsoft
Microsoft has evolved from solely offering software to offering AI and cloud services. The company has focused largely on products by making them accessible to over one billion people around the world who may require additional assistance due to being physically challenged. One of these is the Xbox Adaptive Controller, which is designed for gamers with limited mobility. The company has also championed other innovative products like the Microsoft mesh that is changing the concept of remote work.
Tesla
Tesla is a leading force in the automotive industry through its electric vehicles. The company engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. Tesla deploys artificial intelligence (AI) in its innovation strategy. Their electric cars have consistently defied consumer expectations for reliability, performance, and style.
Samsung
Samsung is a multi-faceted and innovative company that is leading the field in screen technology, batteries, chip design, and mobile devices. The company has shown strong capabilities in growing existing solutions and taking them to market through the high sale of its consumer devices.
IBM
IBM has moved from its old business model of making and selling computer hardware to offering cloud computing services and data analytics. The company specializes in cloud-based artificial intelligence technologies that are available to developers and organizations seeking to incorporate those tools, which include natural language processing and cognitive computing, into their products. Since the creation of IBM Watson became commercially available, the technology has been applied to everything from cancer research, where Watson is used to sort through and decipher millions of medical journals, to retail, where Watson is being used to help shoppers locate exactly what they’re shopping for or similar items.
Huawei
Huawei is the world’s largest supplier of telecommunications equipment. In a bid to be innovative, the company has created innovation in 5G applications and has also established 5G joint innovation centres together with carriers worldwide. Huawei also experienced massive sales of its phones. In the global fight against COVID-19, Huawei launched the Anti-COVID-19 Partner Program that focuses on AI, remote office, smart healthcare and online education, to support the fight against the pandemic.
Sony
Japan’s tech giant, Sony is a leader in camera technology and has shown great success in its camera and gaming products by successfully taking on Canon and Nikon with cameras aimed at professionals and serious amateurs.
Pfizer
Big pharma company, Pfizer became the first company to market an effective COVID-19 vaccine and also deliver a COVID-19 vaccine in record time, getting FDA Emergency Use Authorization (EUA) and distributing millions of doses less than a year after the genetic sequence of COVID-19 was first obtained.
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