Moghalu says political capture of CBN under Emefiele deepened Nigeria’s economic crisis

Kingsley Moghalu, Nigeria’s former Deputy Governor of the Central Bank, has warned that the country’s economic crises cannot be fully understood without acknowledging what he described as the severe erosion of institutional credibility at the apex bank under former Governor Godwin Emefiele. Moghalu said Emefiele’s leadership marked a turning point in weakening central bank independence, a development he believes accelerated Nigeria’s macroeconomic instability.

In a detailed commentary on X, Moghalu argued that the CBN’s decline during Emefiele’s nearly ten-year tenure was less about isolated policy missteps and more about a “systematic collapse of professional boundaries” between the bank and the political leadership at the time. He asserted that the CBN became vulnerable to political directives under former President Muhammadu Buhari, compromising the bank’s obligation to maintain monetary stability.

According to Moghalu, the CBN’s role as a non-partisan stabilising institution was severely diminished as Emefiele increasingly aligned decisions with the preferences of the presidency. He described the former governor’s approach as that of a “political poodle,” arguing that such subservience made the bank incapable of enforcing discipline in fiscal and monetary management. “All the presidency had to say was ‘jump,’ and he would ask, ‘How high?’” Moghalu wrote.

His comments come as Emefiele continues to battle multiple corruption-related charges following his suspension in 2023. The allegations range from abuse of office to procurement fraud and irregularities tied to the controversial naira redesign programme. Though several charges have been withdrawn and others refiled, the prolonged legal battle has kept the former governor in the national spotlight.

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Moghalu emphasised that the naira redesign policy exemplified what happens when the central bank becomes politically compromised. Rolled out in late 2022, the cash overhaul resulted in widespread shortages, paralysed informal markets, and destabilised rural agricultural communities. The Supreme Court later ruled against aspects of the policy’s implementation, further discrediting the decision and highlighting what many analysts described as avoidable policy chaos.

Beyond policy failures, Moghalu said Emefiele’s attempt to run for president in 2023 while still serving as CBN governor marked an unprecedented breach of ethical norms. The move, which attracted national outrage, reinforced concerns that the institution had shifted from technocratic leadership to partisan involvement.

To illustrate the contrast in leadership styles, Moghalu referenced former Finance Minister Ngozi Okonjo-Iweala, whom he praised for maintaining strict professional boundaries that shielded economic policy from political interference. He argued that her stewardship demonstrated how strong institutions can restrain excessive government borrowing and protect macroeconomic stability.

Moghalu concluded by likening the struggles of African central banks to the myth of Sisyphus perpetually pushing a boulder uphill only for political actors to undo their efforts through short-term decisions. This dynamic, he said, continues to constrain economic transformation on the continent.