Business News
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.
Economy & Politics
Lagos to shut down Marine Beach bridge for emergency repairs
The closure will allow the Federal Ministry of Works to carry out emergency repairs on the bridge, in line with the government’s vision of providing a better transportation system in the state.
Lagos state government has announced that the Apapa Marine Beach bridge will be closed for five months, from Wednesday 27th May, to Wednesday 21st October, 2020.
The closure will allow the Federal Ministry of Works to carry out emergency repairs on the bridge, in line with the government’s vision of providing a better transportation system in the state.
In a statement from the Lagos state Ministry of Transportation, the Commissioner, Dr. Frederic Oladeinde, noted that the repairs were long overdue, and necessary to ensure safety of Lagosians, given the number of motorists that use the route.
READ MORE: Nigerians knock Fashola over comments on “bad roads”
The Commissioner noted that the repairs included bearing and expansion joint replacement and would be executed in two phases, taking one lane of the bridge at a time.
“The first phase will involve handling the lane inbound Apapa while the second phase will be designated to work on the lane that conveys vehicles outside the axis,” he said.
Alternative routes
Oladeinde noted that alternative routes around the bridge had been improved to make them motorable, and ease movements for road users.
READ ALSO: Osinbajo sets up committee on reopening of Nigerian economy, suspends loan deductions for states
To manage the construction period, the statement noted that Traffic Management Authorities would be hard at work to ameliorate the expected traffic issues and supervise other arrangements.
“Motorists inwards Wharf road will be diverted to the other section of the bridge outwards Apapa, a contraflow of 200metres has been put in place for vehicles to realign with a proper direction inwards Ajegunle or Wharf road, Apapa, while Motorists descending to Total Gas under bridge will drive without any hindrance,” it read.
The Commissioner called for the understanding and cooperation of motorists and road users during the period to ensure a smooth flow of plans.
Economy & Politics
Fayemi set to activate digital economy with N5billion broadband infrastructure
Governor Fayemi plans to activate Ekiti state’s digital economy, this would help generate healthy competition within the ICT sector
Ekiti state government has concluded plans to create a digital hub, with the laying of a 606-kilometer broadband infrastructure.
The project is expected to lift the state from 16% internet penetration to 90% and is estimated to be worth N5 billion, with the Federal Government contributing N1.1 billion of the total sum.
Digital economy: Ekiti to lay 606km broadband infrastructure – https://t.co/Ot67wFn6yL pic.twitter.com/ligXcgeQDM
— Government of Ekiti State (@ekitistategov) May 24, 2020
This plan is part of the memorandum of Understanding (MoU) which the state Governor signed with O’odua Infraco Resources Limited, a consortium that develops high speed and efficient Fibre Optic Cable (FOC) Open Access Network (OAN) across the South-West region of Nigeria.
According to the Managing Director of O’odua Infraco Resources Limited, Mr Sammy Adigun, the project will be officially flagged off in October and completed within 14 months.
(READ MORE: What Nigeria stands to gain from new National Broadband Plan)
This decision is a follow-up to the recent crash of Right of Way charges from N4,500 to N145 per meter for broadband infrastructure, and in line with one of the five pillars of Governor Kayode Fayemi’s development plan for Ekiti state.
The Governor noted that these decisions would help generate healthy competition within the ICT sector, thus activating Ekiti state’s digital economy and digital education.
Fayemi noted that the project execution, as well as the broadband policy in the state would be coordinated and supervised by a Digital Infrastructural Committee, made up of various relevant government institutions critical to the implementation of the project.
READ MORE: NCC, Infracos to boost broadband infrastructure with N265 billion
“For us the roadmap is first the fibre connectivity itself, the second is the adequate data center infrastructure, the third is the e-learning programme which will cover our educational institutions, then our safe city, our security programme will also be included.
“With our geographical land information system (GIS), we would digitalize all our land records, and of course, commercial investment as well as digitalisation of our government assets and our health education initiative,” Fayemi explained.
Economy & Politics
NCC reacts to claims that minister chased Diaspora Commission’s staff from office complex
The NCC denies claims of the video on social media, pointing out that the staffs of NIDCOM were not sent packing from the digital economy complex
The Nigerian Communications Commission (NCC) has reacted to claims by the Chief Executive of Nigeria Diaspora Commission (NIDCOM), Abike Dabiri-Erewa, that her staff members were chased out of its premises by armed men on the orders of the Minister for Communication and Digital Economy, Isa Pantami.
The NCC, through a press statement on May 24, 2020 signed by its Director, Public Affairs, Dr. Henry Nkemadu, has said that nothing of such happened as it denied claims in a video making rounds on social media that the staff of NIDCOM were sent packing from the digital economy complex.
According to the press statement from NCC:
“Following the completion of the NCC building at Mbora, Abuja designated as NCC Annex and the acute shortage of accommodation space for the staff of the commission in the NCC head office at Maitama, Abuja, the Board of the commission directed the decongestion of the Head office building. Some of the departments of the NCC had started moving to the new office complex of 5 floors when discussions were held between the NCC and the Diaspora Commission to enable the Diaspora Commission also utilize any free offices within the complex.
“The fifth floor allocated to them had to be used to accommodate other departments from the NCC headquarters to ease the congestion. NCC’s offer to house the Nigeria Diaspora Commission was predicated on the long held position of the NCC that agencies of government will achieve more through strategic collaboration, partnership, synergy and sharing to the extent allowed by relevant laws.”
(READ MORE: PenCom dissolves interim management committee for First Guarantee Pension, appoints new board)
NCC disclosed that it had secured approval for the commissioning of the office complex by President Buhari, and also the launching of 4 important projects of NCC, together with the renamed Ministry of Federal Ministry of Communication and Digital Economy.
It also stated that the offer to NIDCOM had not been withdrawn, but had only hit a bump arising from the preparation for the visit of President Buhari to launch the projects and inaugurate the complex. It said that the Board and Management of NCC took a decision to ensure that every activity in the building was in line with the Federal Government’s agenda.
Going further, the statement reads:
“Incidentally, after the offer of the office spaces to the Diaspora Commission, the Director General, Mrs. Abike Dabiri-Erewa had not visited the complex to take possession of any of the offices and also the commission had not started using any of these spaces as offices.
‘’As is usual in ensuring security and accountability before, during and after presidential visits, the building had to be cleared to allow for only known and identifiable persons to have access within the complex. Therefore, the Honourable Minister of the Federal Ministry of Communications and Digital Economy Dr. Isa Ali Ibrahim Pantami could not have sent armed men to drive the staff of the Diaspora Commission out of the Communication Economy Complex.”
As with every path to success challenges are bond to surface what have been the major challenges since the establishment of the Nigerians in Diaspora Commission – Hon. Abike Dabiri-Erewa, Chairman/CEO of Nigerians in Diaspora Commission. pic.twitter.com/x2yp5CDGs0
— CBN Gov Akinsola Ak🇳🇬 (@cbngov_akin1) May 23, 2020
The statement also pointed out that as at that time, only NCC staff were accredited to have access within the premises and that all properties belonging to NIDCOM were safely warehoused in some of the offices within the complex.
Anodebenze
May 16, 2019 at 5:00 pm
I was not surprised by his reappointment of mr Emefielie.there was no creditable candidate for the governor of cbn.most Nigerian central banker were professional central banker by profession.who will you put in his job,now the nation was facing the biggest challenge for 50 yrs.Mr emefiele have acquired the experience now and skill to chart the Nigeria banking industry.
some of the governor of cbn from north Nigeria were not professional banker, with the except of Sanusi,who was the managing director of first bank ,he was a retail banker by training, the other sanusi was a retail banker,Mr mai-bornu was a politician in the first republic,mallam ciroma was a journalist by training,mr ahmed was an accountant by training.Dr clement isong was an economist by training (a monetary economist)ola Vincent a hybid of economist and banking.professor soludu was an economist by training with inclination of applied economist