Expert Reviews 2 Years of Yemi Cardoso As CBN Governor
- Yemi Cardoso has spent two years so far as the Central Bank of Nigeria after replacing Godwin Emefiele
- Cardoso was tasked by President Bola Tinubu to 'clean up the system' and also introduced workable monetary policy
- Muda Yusuf, CPPE Chief Executive Officer has shared with Legit.ng his assessment of the Cardoso tenure so far
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Centre for the Promotion of Private Enterprise (CPPE) has reviewed the Central Bank of Nigeria’s performance under Governor Yemi Cardoso.
Muda Yusuf the CPPE CEO told told Legit.ng Cardoso has brought transparency and credibility to the financial system.
Source: UGC
He however warned that aggressive monetary tightening risks constraining growth.
The think tank said Cardoso’s tenure has focused on restoring confidence, strengthening governance and repositioning the apex bank to support inclusive and sustainable economic growth.
It noted that Nigeria’s financial system had long struggled with foreign exchange distortions, weak corporate governance, excessive monetary financing and limited access to affordable credit.
Some key achievements under Cardoso
According to CPPE, one of the most significant reforms under Cardoso has been the liberalisation and unification of the foreign exchange market.
This has reduced arbitrage, improved liquidity and boosted price discovery, helping attract inflows from autonomous sources.
Yusuf said:
"The Central Bank of Nigeria (CBN) plays a pivotal role in shaping Nigeria’s macroeconomic trajectory. Over the past two years, under the leadership of Mr Yemi Cardoso, the CBN has undertaken comprehensive reforms aimed at restoring confidence, strengthening governance, and repositioning the financial system to support inclusive and sustainable economic growth."
Other achievements he noted is that institutional governance has also been strengthened, with better oversight, reduced political interference in monetary policy decisions, and curtailed monetary financing that once fuelled fiscal dominance.
It added that on financial system stability, the CBN introduced bank recapitalisation measures, improved risk management frameworks and safeguarded resilience against domestic and global shocks.
CPPE added that through interest rate hikes, liquidity management and reforms, the apex bank has contributed to a recent deceleration in inflation and restoration of macroeconomic stability.
CPPE shared its concerns
One of the concerns group warned that the current stance of monetary policy is highly restrictive, with the Monetary Policy Rate at 27.5% and the Cash Reserve Ratio at 50%.
It said the measures have pushed up the cost of funds, suppressed private sector borrowing in sectors such as manufacturing, agriculture, SMEs and real estate, and risk crowding out private investment with high-yield government securities.
It also observed that while market-based reforms improved efficiency, they have not addressed structural financing gaps.
Small and medium enterprises still face limited access to affordable credit, while long-term projects in infrastructure, agriculture, construction and real estate lack patient capital and funding mechanisms.
Source: Facebook
Advice for CBN going forward
The CPPE advised the CBN to strike a balance between price stability and growth by gradually easing the CRR and MPR as inflation moderates, and complementing monetary tightening with supply-side measures to address structural inflation.
It further recommended credit guarantee schemes, concessionary financing for SMEs and critical sectors, development finance instruments, and deepening of the domestic bond market to mobilise resources for infrastructure.
The report also urged the CBN to institutionalise corporate governance reforms, protect its independence from political pressures, maintain clear policy communication, and broaden consultation with industry stakeholders.
CPPE chief executive Muda Yusuf said:
“The leadership of Mr. Yemi Cardoso has brought about a significant transformation of Nigeria’s financial system, with gains in transparency, credibility, and stability. The next phase of reform must focus on achieving a more balanced policy stance that supports growth while preserving macroeconomic stability."
Naira rises, dollar falls in latest exchange rate
Earlier, Legit.ng reported that the Naira strengthened against the United States Dollar in the official Nigerian Foreign Exchange Market (NFEM) on Friday, September 10.
It was the same outcome for the naira against other currencies as it recorded gains against major counterparts in the official window.
Source: Legit.ng
