Nigeria’s financial market seen stabilising as Cardoso assumes duty at CBN

Experts in the Nigeria economic space are expectant of more stabilsed economy especially in the Nigerian financial market, as Olayemi Cardoso assumes duty as acting governor of the Central Bank.

Cardoso was appointed by president Tinubu last week to serve as the new Governor of the Central Bank of Nigeria (CBN), along side four deputy governors for a term of five years at the first instance, “pending their confirmation by the Nigerian Senate,” according to Ajuri Ngelale, Presidential Spokesman.

However, the current annual recess by the Senators — who are due to resume next week Tuesday — has delayed their screening and subsequent confirmation as required by law.

The CBN in a statement on Friday announced that Cardoso has formally assumed duty in an acting capacity as the Governor of the apex bank pending his confirmation by the Senate. The statement noted that his assumption of office followed the resignation of Godwin Emefiele, former CBN Governor.

The new Deputy-Governors-Designate also assumed duty, equally in acting capacities, sequel to the formal resignation of Folashodun Shonubi, Aishah Ahmad, Edward Lametek Adamu, and Kingsley Obiora as Deputy Governors of the CBN, it further noted.

While many see the development as a breach of the laws, some experts who spoke to Businessday rather anticipate stability in Nigeria’s financial market.

According to Uche Uwaleke, professor of finance and capital market, Nasarawa State University Cardoso’s assumption of office in an acting capacity was necessary, as it will impact the confidence of players.

He however frowned at his resumption without the confirmation by the Senate.

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He said, “Seeing him as a substantive governor sends the right signal to the financial market, it was clear that the former was acting and it is not right to have an acting governor for a long time, considering the importance of the bank.

“The market will be more stable now, with less distraction, because Cardoso, even though acting, is the substantive governor. The market will see them as people that have come to stay.

“However, I expected the president would have waited for him to be confirmed by the Senate, or called for an emergency meeting to confirm him, this ensures that things are done following due process.”

“Much as having a substantive CBN Governor, as quickly as possible, is in the interest of financial markets, it’s important that due process, as stipulated in the CBN Act, be followed.”

The Senators went on their annual recess in August and are scheduled to resume next Tuesday (September 26), and may not reconvene before the resumption date to screen the CBN appointees and nominated ministers.

Also speaking with Businessday, Muda Yusuf, the CEO of Centre for Promotion of Private Enterprise said, “there is nothing wrong with Cardoso assuming office in an acting capacity, just as we see in other Institutions, leaders act before they are confirmed.

“The former leaders did a lot of damage and they needed to leave. All those who were there were asked to leave so someone has to be there, seeing that we have a substantive governor the development was needed.”

However, Auwaal Ibrahim Rafsanjani, the Executive Director of Civil Society Legislative Advocacy Centre, who said that Cardoso assuming office without confirmation of the Senate was not the right move, advised that it was necessary for the Tinubu-led administration to always act in accordance with the rule of law.

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For him, “The new Governor assuming office without the confirmation of Senate is not good for consolidating democracy. There is a reason why the law say that leaders must be confirmed before assuming office.

“We had someone who was acting, why are we having another person also in an acting capacity? This inconsistency might send the wrong signal to the financial market. I think it is important we follow due process, send his name to te Senate nd wait for him be confirmed before he is allowed to assume office.”

The apex bank had also announced that the deputy-governors-designate also assumed duty, in acting capacities, sequel to the formal resignation of former.