- Speakers at Nairametrics’ “On the Money” series believe that CBN policies under Emefiele were influenced by the Buhari administration, leading to poor decisions.
- Confidence in the CBN and its policies directly impacts currency value and interest rates, according to Zeal Jacobson and Ifeanyi Ubah.
- Emefiele’s removal is compared to Sanusi’s, with Zeal highlighting Emefiele’s compromise of CBN independence and competence to accommodate government interference.
Speakers at Nairametrics’ “On the Money” series, held on Saturday, June 10, on Clubhouse, expressed their belief that CBN policies under Godwin Emefiele were dictated by the Muhammadu Buhari administration.
They argued that the Buhari administration restricted the CBN’s independence and disregarded market rules, leading to several poor decisions, including the Naira Redesign policy.
What the Speakers Said
One of the speakers, Zeal Jacobson, highlighted the loss of confidence in the CBN, using the currency as an example.
- He explained that confidence in the people responsible for the country’s monetary policy directly impacts the value of the currency and interest rates.
- Another speaker, Ifeanyi Ubah, supported this viewpoint by referring to data that reflected low confidence in the CBN.
He further criticized Godwin Emefiele’s tenure as CBN Governor, agreeing with President Tinubu’s decision to remove him.
Comparing Sanusi and Emefiele
Drawing parallels, Zeal compared Emefiele’s removal with that of Sanusi Lamido Sanusi during the Goodluck Jonathan administration.
- He noted that Sanusi’s outspoken nature resulted in his removal and Emefiele’s appointment as his replacement, emphasizing the stark contrast in their characters.
- According to Zeal, Emefiele was easier to control and compromised the independence and competence of the CBN to accommodate the interference of the Buhari administration.
Support for Emefiele’s Removal
Wale Smith, another speaker, supported the notion of replacing Emefiele, considering the new administration’s commitment to unifying the exchange rate and implementing different economic policies.
- Wale Smith discussed the government’s attempts over the last 10 years to influence the CBN’s decisions.
- He emphasized that a reasonable CBN governor should understand the government’s objectives but also have the autonomy to determine the best approaches.
- However, during Emefiele’s tenure, he acted with the approval of an intrusive president, prioritizing pleasing the ruling class over sound economic decision-making.
- Zeal criticized Emefiele’s approach, which he believed destabilized the Nigerian economy, and advocated a return to market forces determining market rates rather than CBN dictation.
Expert View on Tinubu’s Plan to Unify Exchange Rate
Looking ahead to the Tinubu administration, Zeal responded to President Tinubu’s plan to unify the exchange rate by questioning where the rate would be unified.
- He also emphasized the importance of addressing the backlog of unmet dollar demand and providing liquidity to attract investors.
- Walle Smith advised the Tinubu administration to avoid Emefiele’s unorthodox economic approach, which had proven ineffective.
- He suggested that the government should define clear objectives for the CBN, including reasonable inflation targets and interest rates.
Smith also recommended giving the CBN freedom in determining the instruments to achieve these objectives and monitoring their performance over time.
Let’s not find an easy way out for this man. If he feels Buhari policies were affecting his job he should have resigned, but he stayed them enjoying big money and making Nigeria s suffer.
If everyone who purportedly “made Nigerians suffer” were arrested, why stop at Emefiele?
Let’s start with Emefiele’s boss Buhari, and go through virtually everyone who held public office in the last 8 years when Nigeria regressed from one of the world’s fastest growing economies (World Bank/IMF) to the World Capital of Extreme Poverty!
I am not necessarily a fan of Emefiele, but it will take some convincing that this action isn’t payback for the money redesign that starved Tinubu and most politicians of the cash to buy votes (its unintended consequences on the masses notwithstanding).
@Collins the oil in your head will not finish there is nothing to add to this. And if it is his boss he should say it
It won’t be proper to merge the Naira exchange rate until such a time when Nigeria will have adequate foreign exchange to meet everyone’s need and we know it won’t be soon.
Once the official exchange rate is brought down to match the “aboki fx” rate, the “aboki fx” rate will move.