The convener of United ACTION TOWARDS BUILDING INSTITUTIONS IN NIGERIA (UATBIN) Mr. Lai Omotola has said that it will be in the interest of the country and the economy to appoint a new Central Bank Governor when the tenure of the present Governor expires on the 3rd of June 2019.
This is hinged on the need to bring someone with new ideas that will take the country to the next level. The issue of economy was rigorously debated at the just concluded presidential election and if the truth must be said, a lot of people voted for Alhaji Atiku Abubakar because they were not impressed with the state of economy.
The Central Bank is a central part of the economy and as such the time is ripe to bring in someone that will transform the economy within the next four years. For us to maintain the status quo at CBN is to ascribe to the adage that says “ its an act of insanity to expect different result from doing the same thing”
The present CBN Governor, Mr. Emefiele despite all, has not been able to put the economy on strong stead. The Governor has inverted the role of the CBN being the lender of last resort to lender of first resort. The actions and the activities of the CBN has made critics say that the government is leading the economy instead of the private sector.
Under the watch of the Mr. Emefiele, businesses have suffered the most unprecedented shutdown; our banks have been turned into cash centres instead of investment and commercial Banks. If a vote were to be taken at the Bankers Committee, the vote will turn to be “vote of no confidence” on the Central Bank Governor but such will not happen because they are scared.
On the programs of the Bank, the CBN has usurped the role of the Banks in lending such that no Bank can lend therefore access to credit is at the lowest since independence. Anchor borrower has taken the role of Bank of Agriculture and you need to know top persons at CBN before you can enjoy such credit.
The various interventions in real sectors have not yielded the desired results despite billions of naira expended. To even get access to the intervention funds you need to sit one on one with the CBN governor. I am yet to see the sector that have benefited from the intervention fund that made significant impact in the life of an ordinary Nigerian.
The core business of CBN like reduction of interest rate is yet to be seen instea, we have seen rate at an unprecedented high, too high for any reasonable business to survive. The inflation rate has gone up to double digits and there has not been any significant leap to the positive. The exchange rate has remain stable and the CBN governor believe we should give him kudos for saving the naira at N360 to a dollar, this kind of narrative can only be in Nigeria.
Finally, in 2014, Mr. Emefiele inherited inflation rate of 8%, interest rate of 16.5% reserve of $40billion and exchange rate of N164 by 2019, he is with inflation rate 13.5% Interest rate of 14% and exchange rate of N360 and reserve of $43billion. Mr. Emefiele should be thankful to have been retained by APC government when we know that it was the PDP government that appointed him.
It’s time for a change that will take us to the next level. My take