CEO of the Cowry Assets Management, Johnson Chukwu, has stated his expectations following the confirmation of Olayemi Cardoso as the 12th Governor of The Central Bank of Nigeria and four other deputy governors.
Cardoso, in his screening speech, stated plans to ensure the CBN grows the Nigerian economy in size to a staggering value of 1 Trillion Dollars in Gross Domestic Product in 8 years with the aid of fiscal reforms. To many , it’s achievable only of Cardoso can fix Nigeria’s current economic trench by working on its economic variables. The confirmation came after the emergency resignation of Godwin Emefiele from the position.
According to Johnson Chukwu in an ARISE NEWS interview on Wednesday, these plans are dependent on actions of fiscal authorities as well as his ability to control inflation rate which depends on control of exchange rate and food production as well as economic structural defects.
“To control the exchange rate, which is a third component of the price stability you have to either control either capital import or export earnings. Can you control export earnings if you cannot control your crude production which is basically at the footsteps of the executive government?
“To effect plans he’d need to look at what are the tools at my disposal and what is the environment I’m operating in? The environment today requires a lot of effectiveness in leadership and management from the executive arm of government to make monetary authorities effective in managing the price levels as well as managing the system.”
Another aim which Cardoso expressed that his administration would achieve would be establishing the independence of the CBN. According to Johnson, the appointment method used to instate the governor already puts them on a ‘hot stool’. He made an example of the abrupt removal of the two previous governors of the CBN. He expressed the need for laws that make it hard for the president to suspend them.
Despite Cardoso’s promises, many, including foreign authorities have questioned the integrity of the CBN especially after the President, in a conference in France, stated that the establishment was rotten and ordered its investigation.
Johnson defined integrity as the ability to walk the talk, then went further to say, “what we have had are instances where the cBN has breached the trust of the society.
According to the economist, “The Hallmark of it from the past administration was the naira depreciation. It was a situation where one of the roles of the central bank, which is maintaining the smooth flow of financial transactions was breached.”
He also ways and means funding breach to increase government fund allocation saying it disputes the bank’s transparency. He further stated that to achieve transparency, the CBN would need to put implementation of policies into the public space, correct failure to publish bank audit for over fine years and transparency on the Foreign exchange sector.
He also pointed out that it must work hand-in-hand with fiscal authorities and abiding by laws surrounding the sector.
“There should be an economic management team that will encompass the fiscal and monetary authorities and other things Discuss so that the two managers of the economy don’t move in opposite directions.”