Nigeria's New Central Bank Governor to Revamp Monetary Policy

Yemi Cardoso, the new Governor of the Central Bank of Nigeria (CBN), plans to clear a vast overhang of dollar obligations and enforce compliance with all rules that pertain to an open and transparent foreign exchange market for investors. He believes these measures will strengthen the fragile trust of foreign investors in the Nigerian economy and put the brakes on the naira's free fall against the dollar, writes Ronald Adamolekun for Premium Times.

Cardoso's top priority is to address the backlog of unsettled foreign exchange obligations to local lenders, which he estimates could be as high as U.S.$7 billion. Aligning with President Bola Tinubu's promise to revamp monetary policy, Cardoso pledges to improve the central bank's transparency and corporate governance while restoring confidence in its autonomy and integrity.

Analysts have expressed concerns about Cardoso's appointment, given his commercial banking background rather than experience in central banking. However, Cardoso has assured the Nigerian Senate that he will focus on getting monetary policies right, with a specific focus on macroeconomic objectives.

Cardoso's biggest challenges will be to restore the central bank's credibility after eight years of mismanagement, boost confidence in Africa's worst-performing currency, and slow an inflation rate that's among the highest on the continent.