CPPE Boss, Yusuf, Reviews 2 Years of Yemi Cardoso As CBN Governor
Yemi Cardoso, Governor of Central Bank of Nigeria, (CBN) has spent two years so far as the helmsman of the Apex Bank after replacing Godwin Emefiele. President Bola Tinubu charged Cardoso to ‘clean up the system’ and also introduced workable monetary policy. Dr. Muda Yusuf, Chief Executive Officer Centre for the Promotion of Private Enterprise (CPPE) has shared with Gentechnews his assessment of the Cardoso tenure so far. CPPE has reviewed the Central Bank of Nigeria’s performance under Governor Yemi Cardoso.
Dr. Muda Yusuf the CPPE CEO in his statement, noted “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.”
CPPE highlighted that one of the most significant reforms under Cardoso has been the liberalisation and unification of the foreign exchange market, adding that this has eliminated multiple FX windows which reduced arbitrage and corruption, improved liquidity and boosted price discovery, allowing for a more efficient allocation of FX resources.
Other achievements he stated is that institutional governance has also been strengthened, oversight mechanisms and internal controls, reduced political interference in monetary policy decisions, and curtailed unrestrained monetary financing as well as reducing fiscal dominance and macroeconomic distortions.
The report noted that maintaining confidence in the financial system has been a core priority under Cardoso leadership as the Apex boost banking sector resilience by introducing recapitalization measures to enhance the soundness of banks as well as introduced risk management, which strengthened regulatory frameworks to safeguard stability in the face of global and domestic 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 and 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 also opined that while market-based reforms improved efficiency, they have not addressed structural financing gaps, adding that 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.
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 also 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 Centre 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, Dr. 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.
“Addressing structural financing gaps and sustaining governance reforms will be critical for unlocking the financial sector’s full potential as a driver of inclusive economic development.”