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The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has publicly criticised his predecessor, Godwin Emefiele, for implementing policies that have cast the country’s apex bank in a negative light in recent years.

Speaking at the Chartered Institute of Bankers of Nigeria’s (CIBN) 50th-anniversary event on Friday, Cardoso highlighted corporate governance failures, reduced institutional autonomy, divergence from the core mandate, and unconventional use of monetary tools as key issues that have plagued the CBN.

He also pointed out challenges such as an inefficient and opaque foreign exchange market that obstructed transparent access and the CBN’s involvement in fiscal activities.

Cardoso stated, “Events over the past few years have tarnished the image of the CBN. These issues can be attributed to various factors, such as corporate governance failures, diminished institutional autonomy, deviation from the core mandate, unorthodox use of monetary tools, an inefficient and opaque foreign exchange market hindering clear access, and a foray into fiscal activities under the guise of development finance activities.”

“There was also a lack of clarity in the relationship between fiscal and monetary policies, among other challenges,” he added.

Furthermore, Cardoso criticised the CBN for engaging in quasi-fiscal activities and inflating the economy with over N10 trillion through various initiatives across different sectors, which diverted the Bank from its primary objectives and led to involvement in areas where expertise was limited.

Despite his critique, Cardoso affirmed his commitment to addressing the issues affecting the CBN during his tenure.

“Under my leadership, the Central Bank of Nigeria will vigorously tackle these issues. We will address institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies,” Cardoso assured. “We guarantee investors and the business community that the economy will witness significant stability in the short-to-medium term as we recalibrate our policy toolkits and implement far-reaching measures.”

Emphasising the impact of Emefiele’s policies, Cardoso referenced the contentious Naira redesign Policy, which resulted in currency scarcity and hardships for Nigerians in early 2023.

It is pertinent to note that President Bola Ahmed Tinubu suspended Emefiele as the CBN governor in June, and the embattled governor was recently granted N300 million bail over an alleged N1.2 billion procurement fraud.