The Nigerian Senate has confirmed the re-appointment of the Central Bank of Nigeria (CBN) Governor, Gowin Emefiele. Mr Emefiele’s confirmation was disclosed to the public at the end of today’s Senate Plenary Session.
Senate reverts to Plenary and and reports progress.
— The Nigerian Senate (@NGRSenate) May 16, 2019
Narametrics understands that Mr Emefiele was confirmed for re-appointment following the adoption of the report of the Committee on Banking, Insurance and other Financial Institutions which was presented by Senator Rafiu Adebayo during today’s plenary.
Senate’s President’s Remarks: In his remark, the Senate President, Dr Bukola Saraki, congratulated Mr Elefiele on his re-appointment, whilst urging the CBN Governor to use his second term to improve Nigeria’s economy.
“On behalf of the Senate, let me congratulate the Governor of the Central Bank, Mr. Godwin Emefiele on the renewal of his appointment. We wish him a useful tenure and may he use
“this opportunity to continue to provide support to ensure that the economy of our country continues to improve and address the important area of ensuring macro-economic stability”
Optics – Mr. Emefiele’s confirmation by the Senate came just a day after the Senate Committee cleared him during a screening session, where he addressed the Senate members of the state of the Nigerian economy. Recall that the CBN boss was nominated last week by President Muhammadu Buhari who sent a nomination letter requesting the Senate to confirm Mr Emefiele for a second term in office.
Since his nomination for re-appointment, public opinion has been divided over the President’s decision.
Nairametrics also reported an alleged 500bn fraud which involved Mr Emefiele and other top officials at the CBN. Some people thought this would detract Mr Emefiele’s reappointment. However, against all odds, he has been confirmed to wheel the apex Bank for the next five years.
The CBN Governor was first appointed by former President Goodluck Jonathan in 2014 and was retained after the President assumed office in 2015. His reappointment makes it the first time in 20 years, that anyone would be serving two terms as CBN Governor.
Upshots – Nairametrics earlier analysed the implications of the reappointment of Mr Emefiele’s on the Nigerian economy. Some highlights of the positives and negatives as earlier reported
- Stability in the banking system as he is likely to continue with his policies.
- Continuing with the CBN developmental programs which will favour farmers and targeted SMEs.
- Exchange rate stability as a strategy is likely to persist provides oil price remains flat. The CBN Governor is not ready to float the naira fully.
- Continues with the policy on the ban of forex allocation for 41 banned items.
- Just as some benefit from the banning of the 41 banned items, most will suffer from it. Industries that require raw material inputs included in the ban list will have to grapple with the obvious reality.
- Importers of goods and services listed on as banned items will also continue to face the impact of lost revenues. The trade industry has been in recession since 2016
- Independence of the CBN might be further eroded during his tenure. Critics have often cited frequent interference by the executive branch on activities of the CBN.