It is a common understanding that the position of a Central Bank Governor requires experience and knowledge to maintain a country’s economic stability.
The transition of Godwin Emefiele, Governor of the Central Bank of Nigeria, into politics has dominated headlines and caused vibrations throughout Nigeria.
The ill-advised decision to become a card-carrying member of the ruling All Progressives Congress (APC) and an audacious attempt to enter the party’s primary race to become its presidential flagbearer is unprecedented in the history of Nigeria.
This plunge into partisan politics by the CBN’s top boss has far-reaching ramifications in the economic-political realms.
A CBN governor’s function is critical in every country since he is responsible for regulating the money supply, preserving monetary and financial stability, and implementing economic policies.
Furthermore, he is responsible for overseeing banking services and supervising financial organisations’ actions
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As a result of these duties as a financial regulator, allowing a Central Bank Governor to become a politician has substantial economic consequences.
Emefiele’s foray into politics has also resulted in multiple conflicts of interest.
These conflicts have impacted policy decisions and created scenarios in which his values have impacted his judgments as a regulator.
His political switch has produced market volatility because investors are concerned about changes in the Central Bank’s financial policy tools.
With the recent redesign of the currency near the national elections and the governor claiming the aim is to prevent vote buying, the question on the lips of many is, “why the CBN boss has suddenly usurped the role of INEC and the law enforcement agencies?”.
This poorly designed policy, with its aimless and haphazard execution, has led to massive cash shortages resulting in unbearable pain and hardship for the masses.
Another question most are asking is, “how are we sure the politicians have not hijacked the new naira notes produced?
It is hoped this policy of Emefiele and his currency swap is not cutting the nose to spite the face.
The governor stands the risk of his former proficiency getting lost and forgotten due to the abrupt evolution from being a financial connoisseur to a political neophyte.
“Politicians are like red palm oil. They will stain your white kaftan”.
February 25th is a few weeks away.
Will the CBN governor be vindicated? Only time will tell.
Until then, be safe. Be wise. No politician is worth dying for.
Ikechukwu Dominic Okoh
01/02/2023
https://www.linkedin.com/in/ikechukwu-dominic-okoh-2440905b