What is happening?
President Buhari is retaining Godwin Emefiele as the Governor of the Central Bank of Nigeria (CBN), hopefully for the next 5 years which is the typical tenure of a CBN Governor.
Hmm, okay isn’t that normal?
Nope, Emefiele is the first CBN Governor to get a second term since (Late) Alhaji Abdulkadir Ahmed who served from 1982 to 1993 under Shehu Shagari (civilian government), Buhari and Ibrahim Babaginda (both military).
He must have done a great Job right?
Well maybe, you be the Judge.According to Stears Business, here’s a comparison of the Nigerian economy pre-Emefiele (Q2’14) and the economy today (as of March 2019).
Errm, this doesn’t look good, why is he coming back?
While his performance is questionable, the drop in Nigeria’s performance can be largely attributed to the collapse of Global Oil prices from $115 per barrel to $57 within a few short 2014 months, eventually leading to a significant decline in dollar supply in the country.
However, many weren’t too pleased with how the CBN Governor and Minister of Finance handled the collapse.
But he must have done something right right?
On the bright side, as at the last quarter 2018, the Nigerian economy grew at 2.38%, with inflation dropping for the third consecutive month to 11.25%.
Also, Emefiele did a decent job addressing three main banking issues the CBN faced:
The 9Mobile default: Etisalat Nigeria, now called 9mobile, took out a syndicated loan from 13 Nigerian banks but failed to make repayments in 2017. CBN helped ensure this was settled amicably.
Skye bank: CBN probably made the right choice in acquiring Skye Bank when it saw it was going under via a bridge bank – Polaris bank.
Access-Diamond merger: Following uncertainty around Diamond Bank’s financial position and performance, CBN gave a nod for it to merge with Access Bank to protect customers and investors from any serious loss.
What should we expect in his second term?
Now that the economy seems stable, hopefully, more progress.