N’Assembly plans quick screening, private sector demands forex reforms

The National Assembly has made suggestions that it intends to speed up the selection of candidates for the roles of deputy governor and governor of the Central Bank of Nigeria.

This would be done, according to the parliament, along with a list of the president’s two nominations for ministry positions.

Yemi Cardoso was proposed by the president as the new governor of the Central Bank on Friday.

In 1999, Cardoso served as the budget and economic planning commissioner for Lagos State.

In addition, Tinubu gave his approval to the appointment of four new deputy governors of the top bank, each of whom will hold office for a comparable initial term of five years, subject to Senate confirmation.

Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello are the nominees.

However, the Senate announced on Sunday that it will review the new ministry nominations as well as the governor and other CBN executives as soon as it received an executive communication to that effect upon returning from its annual break.

Yemi Adaramodu, the chairman of the Senate Committee on Media and Publicity and a spokesperson for the Senate, stated on Sunday that the Red Chamber was prepared to “act swiftly” over the vetting of the nominees.

Dr. Jamila Ibrahim and Ayodele Olawande were named as ministers of youth and minister of state for youth, respectively, by the president on Sunday.

The Senate must approve the ministers’ appointments before they take effect. Ajuri Ngelale, the president’s special envoy for media and publicity, made the observation in a statement.

48 ministerial nominees’ names had already been submitted to the president for approval in two batches.

The Red Chamber, however, rejected three nominees, including former Kaduna Governor Nasir El-Ruffai and former Nexim Bank MD Stella Okotete, while confirming 45 cabinet nominees.

After the screening, the Senate began its yearly break, which is anticipated to end on Tuesday, September 26.

Following the rumored resignation of the previous governor, Godwin Emefiele, Cardoso was nominated.

“President Tinubu nominates new CBN governor and management team for senate screening and confirmation,” reads the announcement.

In addition, Tinubu gave his approval to the appointment of four new Deputy Governors of the Central Bank of Nigeria, who will serve initial terms of five years subject to Senate confirmation.

After being named by President Bola Tinubu, Folashodun Adebisi Shonubi had been in control of the top bank in an acting role.

Adaramodu stated that the Senate would resume on September 26 to consider the new nominees. When the Executive is able to do so, the Senate will be anticipating the nominations.

According to the Constitution, the Executive must present ministerial and other statutory nominees to the Senate for consideration and confirmation. The Senate is prepared to take quick action on this.

The number of ministers would increase from 45 to 47 once confirmed.

Legal squabble

President Bola Tinubu may need to dismiss the four deputy governors who served under Godwin Emefiele in light of the nominations of Yemi Cardoso as the CBN’s new governor and Mrs. Emem Usoro, Mr. Muhammad Dattijo, Mr. Philip Ikeazor, and Dr. Bala Bello as its new deputy governors.

Reuters reported that Godwin Emefiele had to step down while still being held in custody in order to make room for Cardoso to take his place.

However, the CBN ACT of 2007 gives the President the authority to dismiss deputy governors without the need for Senate approval or a formal resignation from the CBN governor.

Section 11 (1) of the act states, “A person shall not remain a Governor, Deputy Governor or Director of the Bank if he (f) is removed by the President: Provided that the removal of the Governor shall be supported by two-thirds majority of the Senate praying that he (she) be so removed.” This is one of the requirements for the disqualification of a CBN governor or deputy governor.

Folashodun Shonubi (Operations Directorate Oct 2018 – Sep 2023), the acting governor, is one of the deputy governors who is most likely to be fired.

Others include Dr. Kingsley Obiora (Economic Policy Directorate Mar 2020-Sep 2023) and Aishah Ahmad (Financial System Stability Directorate Mar 2018-Sep 2023), as well as Edward Adamu (Corporate Services Directorate Mar 2018-Sep 2023).

The Act states that a board of directors made up of a “Governor who shall be the Chairman; four Deputy Governors; the Permanent Secretary, Federal Ministry of Finance; five Directors; and Accountant-General of the Federation” will be responsible for setting policy and overseeing the general administration of the bank’s affairs and business.

Lawyers respond.

While their terms were still in effect, certain Senior Advocates of Nigeria protested with the nomination of four new CBN deputy governors.

They couldn’t be their replacements, according to Mike Ozekhome, SAN, unless they were taken out first.

Tenure is statutory, he declared. Replacements can’t be made unless the original employee is fired first. Two Obas, two Ezes, or two Emirs cannot coexist in the same palace. Before another takes the throne, one must depart.

Additionally, a lawyer named Adegoke Rasheed, SAN, said that their statutorily required appointments were in order.

He further stated that anyone with grievances against them should contact the proper parties.

“I think their appointments are legally correct and constitutionally acceptable,” Adegoke remarked. Even though they are currently on a temporary basis pending Senate confirmation, their positions remain legitimate once that procedure has been followed. People could feel uncomfortable and think they shouldn’t hold a position that can be elevated to the proper quarters.

Ifedayo Adedipe, SAN, asserted that the president should be permitted to pick persons who could advance his agenda in light of the corruption charges from the apex bank.

In his opinion, the president ought to pick someone who can help him carry out his ideas, he declared. It is alarming to learn that the apex bank is involved in unfathomable corruption. The job of president is challenging. As long as there are no security complaints against them, we should let him choose anybody he wants because this country is in chaos.

Demands of the private sector

Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria, asked the new CBN leadership to prioritize matters relating to monetary policy and foreign exchange management.

I think getting our monetary policy right will be one of the things we want, as well as managing the foreign exchange, he said.

Mr. Wale Oyerinde, Director General of the Nigeria Employers’ Consultative Association, also spoke and emphasized the necessity for the next governor of the CBN to handle the nation’s foreign exchange crisis.

The incoming CBN governor, without a question, faces a challenging challenge, he added. But the first step would be to address the ongoing forex problem, which is the main cause of the economy’s high inflation and rising interest rates.

“Tackling the FX problem would probably lower inflation and interest rates. In this context, it’s critical to assess the actual position of Nigeria’s foreign reserves in order to resolve the recent JP Morgan debate that the reserves are $3.9 billion, not $33 billion as stated by the previous CBN management, and to ascertain the likelihood that the reserves will be used for intervention.

“It is also crucial that the new apex bank management engage the presidency, which is also in charge of petroleum resources, to broker how to upsize crude oil production to at least the 1.6 million barrels per day Organization of Petroleum Exporting Countries quota for Nigeria in order to improve the level of forex inflow,” he continued.

“It is crucial for the CBN to increase forex intervention/sales to the official forex market with a mandate for more forex allocation to the productive sector in order to keep directing the economy. Even if the task is enormous, it is manageable.

In addition, Dr. Ikenna Nwaosu, a facilitator with the Nigerian Economic Summit Group, emphasized the necessity of financial system stability in response to the new appointment.

For his part, Gabriel Idahosa, Deputy-President of the Lagos Chamber of Commerce and Industry, encouraged the top bank’s new leadership to address persistent problems including unlimited borrowing from the Federal Government as well as a complete examination of the nation’s monetary policy.

He also advocated for the creation of an international financial hub to facilitate the free flow of foreign exchange and increase foreign investment in the nation.

We also anticipate some innovation from the new CBN governor, Idahosa stated. He has extensive experience working in the financial sector. Since Soludo’s time, one of the things we anticipated the CBN to do was establish the Nigeria International Financial Center. The Nigeria International Financial Centre, a free zone foreign currency similar to Dubai or Hong Kong Financial Centre, was Soludo’s next big ambition after founding the Africa Finance Corporation.

“There would be a free flow of foreign currency into and out of the country if we had an international financial center where anyone could come their money and withdraw it whenever they wanted. Foreign cash would therefore be able to enter and exit that free zone freely. It would be lot easier for us to access foreign currency than it is right now.