A mess was what he inherited: a CBN that was infamous for growing rice rather than focusing on passing monetary policies, and an institution facing challenges to its reputation because its former head abandoned the suit of professionalism for the ‘Babariga’ of politics.
But in the months since assuming office as the country’s apex bank czar, the cerebrally calm Olayemi Cardoso is clearing the mess of Nigeria’s economy with quick wit. In hard times, Cardoso’s reformation has inspired hope and confidence in the desert of the country’s multidimensional challenges. Quietly and meticulously, his tough but inevitable policies are gradually and incrementally revamping, reinventing, and repositioning the nation’s economy for optimal relevance and performance. Top global firms such as Goldman Sachs, Citigroup Inc., and Standard Chartered plc have echoed similar optimism on the state of the country’s economy.
In particular, the aforementioned firms have lauded the CBN monetary policies under Olayemi Cardoso and expressed enthusiasm at the pace of the country’s currency performance against the USD. Razia Kahn, chief economist for Africa and the Middle East at Standard Chartered, told Bloomberg that the naira may end 2024 in the 1,200-1,300 per dollar range. In her words “In more benign conditions,” she enthused “we could test even 1,100 naira a dollar or lower”. In the months to come, Cardoso’s policies will turn the table around for good and chart a new course for the country’s economy.
Fortunately, he has defied all odds by laying a solid foundation for the gains of the future. In their observations, analysts at Goldman Sachs, Citigroup Inc., and Standard Chartered plc “see the naira as advancing by as much as 25% against the dollar this year, as jumbo interest-rate increases and other steps to attract foreign capital yield result,” says Bloomberg in its March 18, 2024 report. But it hasn’t been an easy ride. Tumultuous, bumpy, and unpredictable are some of the appropriate words to describe the long journey towards reinventing the wheels of the Nigerian economy under Governor Olayemi Cardoso.
After inheriting a battered economy that was on a tailspin, Cardoso and his team of economic ‘surgeons’ returned the CBN to its original mandate and made moves to fix a broken exchange rate system, largely to encourage investments.
The MPR was raised to achieve stability and attract patient capital. The executive branch of the government was told, in very clear terms, that there would be no more ceaseless money printing to fund gaping deficits, as in the days of Emefiele who flooded the country with cash only to try to bring them back all in with an ill-fated, politically motivated currency redesign move that killed many lives and businesses.
When naysayers fashioned themselves as experts, filling the airwaves with pessimistic projections about his policies, Cardoso sat before the camera and shared insights. Even the strongest critic was convinced of his brilliance and capacity. He dismantled the doomsday propaganda with action and accountability.
Many have expressed delight at the CBN’s reformation. Except the currency speculators and saboteurs who made a fortune out of the country’s implosion. Cardoso has, simply put, run them out of town and business.
He came prepared and has shown he is fit and up to the task. The rowdy days of Emefiele have been replaced with calm, assured leadership. The headmaster stepped in, and the class stood at attention.
