Tinubu names Cardoso CBN governor in major shake-up

Tinubu names Cardoso CBN governor in major shake-up

...Usoro, Dattijo, Ikeazor, Bello nominated as deputy governors

...Cautious optimism as stakeholders set agenda for new team

President Bola Ahmed Tinubu yesterday set the tone for the planned re-organisation of the Central Bank of Nigeria (CBN) with the appointment of a new management team for the bank.

Tinubu nominated ace banker and former Chairman of Citibank Nigeria, Dr. Olayemi Michael Cardoso, as incoming CBN governor.

Nominated as deputy governors of the apex bank are Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor and Dr. Bala M. Bello.

Experts wasted no time yesterday to draw the attention of the new team to what should be their focus.

The new management team will replace the one headed by the suspended governor of the CBN, Godwin Emefiele.

News of the appointment was broken by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, who said in a statement that Cardoso was nominated to serve for a term of five years at the first instance, pending his confirmation by the Senate.

Ngegale said the appointment was in conformity with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which “vests in the President of the Federal Republic of Nigeria the authority to appoint the Governor and Four (4) Deputy Governors for the Central Bank of Nigeria (CBN), subject to confirmation by the Senate of the Federal Republic of Nigeria.”

Tinubu, according to him, charged the nominees to “use their time to effect the needed reforms at the CBN, to revive both the Nigerian public and global partners’ confidence.”

“In line with President Bola Tinubu’s Renewed Hope agenda, the President expects the above listed nominees to successfully implement critical reforms at the Central Bank of Nigeria, which will enhance the confidence of Nigerians and international partners in the restructuring of the Nigerian economy toward sustainable growth and prosperity for all,” the President’s spokesman said.

Cardoso was Commissioner for Economic Planning and Budget in Lagos State.

Deputy CBN governor designate Dattijo’s last public office was Commissioner for Budget and Planning in the Nasir El-Rufai Administration in Kaduna State.

Expectations high as experts set agenda for team

Reacting to the new appointments, Economics professor, Jonathan Adeyemi Aremu, who served as the Acting Assistant Director of Research at the CBN, said he would have preferred that the nominees rose from the ranks.

“For those appointed, they need to understand that role to be able to perform very well. There are traditional functions of CBN which you don’t go and learn.

“As such, you must be able to have the experience working in the system. So, if the new appointees have it, then we say congratulations,” he said.

Aremu said successive appointees for the top job of the CBN have not discharged their duties creditably well.

He said: “Over the years, we have discovered that those who have been appointed to head CBN have not done quite well.”

Delving into history, he said: “Ola Vincent was in the Bank of England when he was appointed. That’s internal.

“Then, his deputy was also part of the CBN. The person that took over from Ola Vincent was Alhaji Abdulkadri Ahmed, who was equally chosen from the system.

“Even Sanusi was a staff of CBN in Nigeria. Part of the understanding those people have was because they knew the internal workings of the system.

“For a position as sensitive as the CBN, it should not be rushed. I think the President must have done that calculation very well.

“Those who are coming there must know their onions. Well, to me, I’m saying that the insiders are better but I know very well that the insiders have lots of information about the workings of the system.”

Aremu, who is a consultant with the ECOWAS Common Investment Market, said the trouble is not as much as using an insider but about those who can get the job done.

“My opinion is that we want those who can bring the economy back to good reckoning. If they have the right information, perhaps they can work.

“I’m not saying those who are inside are better. There are directors in each department so they will get all the information that they want. But Nigerians’ expectations are very high now.”

Mallam Aminu Gwadabe, President, Association of Bureau De Change of Nigeria (ABCON), hoped the new appointments would calm tension and frayed nerves.

His words: “Now that there is substantive management, decisions will be taken in terms of implementing policies. So, it is expected because of what has been happening around the current management of the CBN.

“I think there is a need for these substantive announcements. And don’t forget they have a meeting of the United Nations General Assembly (UNGA) at the UN headquarters in New York, USA, next week. It will not be ideal to go with the acting CBN team but a substantive team.”

Senator Ben Murray-Bruce described Cardoso’s appointment as “a clear case of a square peg in a square hole.”

In a congratulatory message on his X (formerly Twitter) account yesterday, @benmurraybruce, the former Director General of the Nigerian Television Authority (NTA) said: "Congratulations to my personal friend and brother, Yemi Cardoso, on his nomination as the new governor of the Central Bank of Nigeria (CBN) by President Bola Tinubu". It is a testament to his capabilities and expertise.

“This is a clear case of a square peg in a square hole, perfectly suited for this pivotal role. It’s a proud moment for all who know him, and I’m sure he will make significant milestones in his new capacity.

“Best wishes to him in his new endeavor.”

Okechukwu Unegbu, lawyer, arbitrator and stockbroker, said Nigerians should not expect any miracle from the fresh appointees just yet.

Unegbu, who is Managing Director/Chief Executive, Maxifund Investments and Securities Plc, said the new team needs to understand their role.

“As for the new appointment, we cannot say hallelujah yet because all we need to do is to understand who these people are.

“Unless we understand them, we can’t categorically say the kind of person they are. But of course, the President should have had discussions or recommendations about them before making the appointment. It’s not that they are going to do any magic as such.

“It’s a matter of are they getting the understanding right on the economy we are running, understand the monetary policy that is in place, and then try to listen to elders, because  you cannot avoid elders because they know better. They have gone through the system and they didn’t get their fingers burnt.”

He reiterated that the new appointees need to have a good grasp of the monetary environment, and also work on inflation because this is so high.

“The new appointees have their work cut out for them already. They need to look at the foreign exchange because it’s so high. There is no good sign yet.

“We owe the airlines over $600 million. These are some of the problems they are going to face now and I think  they will need to first of all sit down to understand the environment and make proper decisions.

“I’m sure the deputy governors appointed have to bring their heads down. The problem in Nigeria is that once people get appointments, they become too proud and self-conceited.”

Mr. Moses Adeniran, a former staff of the CBN, said besides Cardoso, not much is known about the deputy governors.

“We can only rely on the President’s judgment as far as the appointments are concerned, that he has chosen the right people. Going by the revelations we have on the ongoing probe of the CBN, we want to rely on the President’s judgment so to speak.

 “As far as the CBN is concerned, the trust is no longer there. It can’t perform its functions in terms of supervisory and other functions because nobody respects them both internationally and even locally.

“So, we rely on the President apparently, maybe he has worked with Yemi Cardoso before and the other people. The President must be sure of their pedigree. We hope they will do better.”

A board member of the CBN told The Nation that he would have preferred a CBN governor from a non-banking or financial sector expert.

The board member, who does not want to be named, said: “What one would have expected this time around for a change would be to have a non-banking sector or financial sector expert because there are strengths and weaknesses in bankers being governor of the Central Bank.

“But it has already happened so we will leave it at that.”

He added: “Once there is that understanding that central banking in a developing economy is not the same as central banking in a developed industrial economy, he (Cardoso) should be able to do well”.

Asked about the general state of affairs in the CBN since the suspension of Godwin Emefiele as governor of the CBN and the spate of alleged arrests and invitation by security agencies and special investigators, the board member said: “For now, there seems to be an air of uncertainty among the staff of the CBN.

“They are a bit concerned that these developments are going on. If you get to the bank now, it’s like a graveyard.

“Invariably, it’s not the best thing to happen to a central bank and it’s regrettable that conditions prevailed which led to this kind of situation.

“Perhaps things would have been handled differently to spare the bank this kind of trauma taking place there.

“Morale is a bit on the low side. Perhaps with the change announced by the President, morale will start regaining momentum as it were. But one can’t be sure about that.

“Their nomination is still subject to ratification by the senate: screening, confirmation by the Senate and then final approval by the President.

“I think the only issue there is that there could be a vacuum now but maybe by next week there may be formal communication from the President on who should take over in the interim.”

It was not clear last night whether the Monetary Policy Committee (MPC) meeting scheduled for September 25th and 26th 2023 will still take place.

The board member, who also attends the meetings, told The Nation that “it’s very uncertain if the MPC meeting coming up next week will hold, because if there is no governor.

“Definitely the MPC meeting will not hold, although preparations are being made.

“Maybe by next week their fate will be determined. But I am not optimistic. It’s not possible that top management has been removed and those ogas still remain. But we don’t know when they want to do it (MPC meeting).”

Also speaking on Cardoso’s nomination as CBN governor, Prof Uche Uwaleke described it as a “welcome development. Dr Cardoso is eminently qualified.

“The CBN is too sensitive an institution to allow a chief executive function in an acting capacity for a long period. A substantive CBN Governor sends the right signals to financial markets”.

Meet the man Olayemi Cardoso

Cardoso comes to his new job with a rich pedigree. Not only is he a former chairman of Citibank Nigeria, he is also a distinguished leader in the financial and development sectors with over 30 years’ experience in the private, public and not-for-profit organisations.

He has also sat on the boards of Nigerian subsidiaries of Texaco and Chevron and chaired the board of EFInA, a financial sector development organisation supported by the Bill and Melinda Gates foundation.

He was in government as Commissioner for Economic Planning and Budget for Lagos State, where he championed the financial reform process which led to the state’s development of independent tax revenues.

In his capacity as a consultant and policy expert, he advised and collaborated with major international development organisations including the World Bank, Ford Foundation, UN Habitat, World Health Organisation and the Swedish Development Foundation.

He started his banking career with Citibank where he eventually rose to the position of Vice President leaving to co-found Citizens International Bank where he was an Executive Director for eight years.

Cardoso studied managerial and administrative studies at the Aston University, where he obtained a Bachelor of Science (B.Sc.) degree.

He is the recipient of several awards including an honorary Doctorate Degree in Business Administration from Aston University, his alma mater, and the Global Distinguished Alumni Award from Citi.

Cardoso obtained a Masters in Public Administration from Harvard Kennedy School where he was a Mason Fellow.

During his tenure as the Chairman of the Board of Citibank Nigeria Limited between 2010 and 2022, Cardoso used his leadership skills and technical expertise to improve both the financial and non-financial wellbeing of the bank.

During this period, the bank’s total assets increased by 308.3 per cent, total revenue grew by 235.6 per cent, shareholders’ equity improved by 231.2 per cent.

Cardoso, as the Chairman of the Bank’s Board also advocated diversity and under his watch, Citibank Nigeria limited was able to execute various big tickets transactions for its many clients gender inclusion.

Similarly, the percentage of women in the bank’s employment improved to 38.3 per cent from 35 per cent when he took over. The percentage of women on the board of the bank also improved to 50 per cent from eight per cent when he became the Chairman.

He was an ardent supporter of Citi’s annual diversity and Citi Women’s initiatives which helped to celebrate the diverse teams at Citi and continues to encourage inclusion amongst its employees irrespective of their gender and/or position.

During his tenure as the Board Chairman, the Bank won various awards and recognitions both locally and internationally, among which are Euromoney – Best investment Bank in Africa 2015, 2017, Lifetime Achievement Global Finance Best Corporate/Institutional Digital Bank in Nigeria 2017, 2018, 2019, the Most Customer Focused Bank in 2016 by KPMG, Global Euromoney Awards for Excellence 2017, among others.

Aston University, Birmingham, UK, wrote this on its website about Cardoso:

“From his days as a student of managerial and administrative studies at Aston in the 1970s to his 30-year career as a financial sector and development policy expert, we catch up an alumnus who has never given up the quest for high standards”.

When asked about his primary role as Chairman of the board of directors, Citibank Nigeria Limited, Cardoso, wrote:  “My career in Citibank started in London. Frankly, I went in and out of Citibank about two or three times, but Citi is good like that, it doesn’t hold it against you. If you’ve got experiences elsewhere, they are happy for you to bring them back into the organisation.

“The last time I went back as a non-executive, and now I’ve been chairman of the bank for almost 10 years.

“It’s easy to feel that there’s a disconnect between you as chairman and everybody else, but in my case, it’s not like that because it’s an institution I know very well.

“It has gone through enormous changes, but it’s where I cut my teeth. One of the things that’s important to realise is that people look up to you. You always try to conduct your activities in a way that conforms to very high ethical standards.

“Citi, for example, is the only US bank on the African continent. There are American companies who come into Nigeria looking for banks they can deal with. We have to show that we can provide the services they are used to in any other part of the world.”

As chairman of the board, my responsibilities are also to ensure that we are able to think globally, act locally. Those are very important issues for us.

“Culturally, to blend in and to ensure that gender sensitivity is properly catered for. I ensure that all those different pieces of the jigsaw come together, enabling Citibank to be run in the most effective way possible.”

Cardoso returned to Aston University, UK in 2017 to receive his honorary degree (Doctor of Business Administration).

Emem Nnan Usoro

Usoro, an alumnus of Harvard Business School and Lagos Business School, served in various capacities in UBA such as Group General Manager and Regional Head.

Philip Ikeazor

A Fellow of the Institute of Chartered Accountants of Nigeria and Fellow, Chartered Institute of Bankers of Nigeria, Ikeazor was the CEO of Keystone Bank Limited; CEO of Ecobank Kenya Limited; Executive Director, Union Bank Nigeria; Director of Union Bank UK PLC; and Director of the Orient Bank Uganda.

Bala Bello

Taraba State born accountant Executive Director of Corporate Services at the Nigerian Export-Import Bank

Muhammad Datijjo

The immediate past Commissioner for Budget and Planning in Kaduna State has two masters degrees –one in Development Economics and Policy from the University of Manchester and the other in International Affairs and Diplomacy from Ahmadu Bello University.

He was also a policy adviser at the Executive Office of United Nations Secretary-General Ban Ki-Moon in New York.