The Implication of Emefiele’s Reappointment to Nigerian Economy
President Muhammadu Buhari has reappointed Godwin Emefiele for a record second term as governor of the Central Bank of Nigeria (CBN) to the delight of many Nigerians and disappointment to some critics.
Emefiele’s appointment makes him the first CBN Governor that will be running two terms in office since the advent of Democracy in 1999 as Professor Soludo and HRH Sanusi Lamido Sanusi only spent a term each respectively. Emefiele’s re-appointment comes with perceived mixed blessings for the Nigerian economy.
According to Nairametrics, one of the positives of Emefiele’s reappointment brings to the Nigerian economy is stability in the banking system which many of his first term policies greatly promote. This also implies that banks won’t be flustered anytime soon except they underperformed like the defunct Skye Bank Plc.
Another merit Emefiele’s reappointment also ensures is a continuation of the CBN’s developmental programs which will favour farmers and targeted SMEs.
With the former Zenith Bank Chief’s reappointment, exchange rate stability as a strategy is likely to persist as long as oil price remains flat just as it is apparent that the CBN Governor is not ready to float the naira fully.
Also, the second term of Emefiele might spell the end for brick and mortar banking as, observers, believe, that his policy implementation for financial technology will continue. This can be attested to Zenith Bank’s exploits in ICT under Emefiele’s leadership.
While in the saddle of Zenith Bank, the CBN boss, through deployment of cutting-edge ICT, strengthened the bank’s position as a leading financial institution in Africa, winning recognition and endorsement at home and abroad for giant strides in other key performance areas like corporate governance and service delivery.
Aside promoting tech-driven banking system, Emefiele’s reappointment also brings good news to local industries benefitting from the bank as it continues with the banning of forex allocation for selected items.
Importers of goods and services listed on the ‘banned’ items will however continue to face the impact of lost revenues unless they develop different business models.
The independence of the CBN, it is feared, might be further eroded during his tenure as critics on Twitter have often cited frequent interference by the executive branch on activities of the Emefiele’s CBN. Mr Emefiele re-nomination means that he will resume his second term with effect from July 2019 and serve until 2024, by which time, he would have also had the distinguished privilege of having served three Presidents: Goodluck Ebele Jonathan, President Mohammadu Buhari and the winner of 2022 elections.