CBN In The Web Of Politics, By Chisom Adindu
A cursory assessment of the administration of former President
Muhammadu Buhari in all facets of socio-economic life was thoroughly
abysmal, and a tragedy in the history of Nigeria. Nigerians, especially
the poor masses, reposed so much hope in the retired Military General
considering his touted integrity. He got the mandate based on his All
Progressive Congress Party (APC) mantra, ‘Change’, hoping he would
restore sanity in our socio-economic life, battered by the sixteen year
misrule by the Peoples Democratic Party (PDP). Nigerians expected a
breath of fresh air from the general who once ruled this country but was
removed through a palace coup. His failed attempts on three occasions
also elicited the massive votes he garnered in 2015. Prior 2015 electoral
victory, his cultic admiration among the poor masses could not secure
him victory until he formed an alliance with four political parties.
A warning signal of what to be expected of his eight-year abysmal rule,
reared its head early in the administration when it took him six months to
constitute a cabinet. But he warned on his inauguration day that he was
for nobody. When eventually the cabinet was constituted, quite a few
were recirculated and spent politicians. He confessed he did not know
many of them. Thereafter he embarked on ethnic clothed appointments,
eschewing federal character spirit as enshrined in the constitution. He
ignored the public outcry for ethnic balancing. He became aloof,
oblivious of what was happening around him. The political hyenas who
knew his weakness took over governance. His illness over a
considerable period also did not help matters, typifying a man who was
not ready nor equipped for the task of governance.
His appointment into key ministerial posts like Agriculture, Trade and
Investment, Finance, (after the exit of Kemi Adeosun), Aviation and
Health to mention a few were skewed. Till he left office, no meaningful
trade and investment policy came out from the Ministry of Trade and
Investment to drive foreign or domestic investment or create jobs.
Ministry of Agriculture became practically a sub-department in the
Central Bank of Nigeria. The former Minister of Education even threw
decency to the winds telling Nigerians that he knew nothing about the
ministry when the President appointed him. We were therefore not
surprised by his woeful performance. So also, were extra-ministerial
agencies with mandates to formulate and execute fiscal policies, who
went to sleep, bereft of what to do. It is often said that “when a fish is
Classified as Confidential
rotten from the head, what do you expect from the body”. The
performance was lackluster with non-existence supervision.
Every appointee had to watch the body language of Mr. President before
acting. Banditry reigned supreme all over the country and ravaged the
food basket of the country. The regime was unable to arrest banditry and
criminality. The country was on autopilot.
But there was an agency of government at the time who saw the morass
and took practical steps to give the economy a lifeline – the CBN. The
Bank during the 8 years of President Buhari administration was the only
agency that worked. The Bank reeled out a lot of programmes which
include the Anchor Borrowers’ Programme (ABP), suspended 43 items
from access to official forex window to promote local production, and
save needed foreign exchange. CBN made it possible for the country to
become a net exporter of rice. Nigeria has attained near-sufficiency in
wheat, fish and poultry, dairy products etc.
Critical sectors of the economy also received support: Power and
Aviation, education, health, among others. During the COVID-19
ravaging era when all nations economy was on lockdown, the Central
Bank of Nigeria became the rescuer, deploying potent monetary policies
to reflate the economy, and immunize it from collapse. It was its effort of
rallying the private sector stakeholders, CACOVID, that pooled
resources together to sustain the economy. At the time, the fiscal
authority headed by President Buhari was clueless on policy option to
adopt and save the economy. Ministries of Trade and Investment,
Agriculture, Health, Education were caught napping, groping, and
unsure of what to do. The CBN provided leadership and resources,
deploying targeted financial intervention to households and businesses.
To encourage repatriation of forex, the CBN introduced Naira-4-Dollar
scheme, 100 for PPP, and RT 200. All these were spearheaded by the
suspended Governor of the Bank, Godwin Emefiele.
Recently, Nigeria’s new President, Bola Tinubu, accused the CBN under
Godwin Emefiele of engaging in rent-seeking and arbitrage through its
policy of multiple exchange rate windows. He implied that the Naira
Redesign and Swap policies were politically motivated. President Tinubu
during election campaigns cried out that the policy was targeted at him. I
am not sure Emefiele has been forgiven by the political elite for daring to
contest the presidency of the country under the platform of the APC. The
Classified as Confidential
effort was frustrated. His Naira Redesign program was interpreted to be
a vendetta against those who worked against his ambition. They forgot
that Godwin Emefiele could not have unilaterally embarked on such
venture without the express approval of the former President. But when
it mattered most President Buhari and his cronies let him down.
The Nigerian Secret Police, DSS, went hunting for Emefiele, alleged of
funding terrorism, but till the game lasted, the President did not
intervene. It was rumored that the immediate past Chief of Defence
Staff, General Lucky Irabor came to his rescue by providing him cover.
The respite was short-lived. Shortly after the inauguration of the new
President, Emefiele was suspended from office, and arrested for sins yet
to be made public.
Emefiele may have naively fell into the booby-trap of those who wanted
him ‘killed’. Heeding the urge, as a sitting Governor of the nation’s apex
bank, to join politics and vie for the post of the president was a
misadventure. It has never been heard of an incumbent apex bank
governor, globally, joining politics to contest election. The move was
what his ‘ambition killers’ wanted, the journey to descent and ignominy.
His ill-fated political ambition beclouded the noble intention behind the
Naira Redesign as stated in the reason for redesigning the banknotes
last carried out over two decades ago, expanding the scope of payment
channels and financial inclusion.
Politicians like Samson’s Delilah in the Bible ganged up to frustrate
Emefiele’s cash swap in cohort with bank chief executives to hoard the
new banknotes thereby eliciting public umbrage. This marked a crack on
his wall of laurelled career, that enabled the proverbial lizard a free
passage. Emefiele has had no one to help him in his present travail. His
patriotic balloon spirit has been busted, with only himself to fight for
himself.
Lesson to be learnt in Godwin Emefiele saga is that: if he had not
probably made a foray into the murky waters of politics, may be the
Naira redesign exercise would not have been coated anti-politicians’
interest. Maybe they would not have hoarded the new banknotes to elicit
public opprobrium against him. Even former President Buhari who gave
approval for the redesign has warned that no one should call him out to
answer any question except the person wants trouble. No one to fight for
him. Where then lies the so-called independence of the Central Bank?
Classified as Confidential
Godwin Emefiele may have made mistakes as a human being, but no
one can fault his patriotism and passion for a better and stronger Naira,
and Nigerian economy. Throwing away the baby with the bathwater will
always be anathema to progress and economic development. National
interest, always, should override personal interest.
Is Godwin Emefiele getting punished for his audacious policies while at
the CBN, or for intransigence into murky water of politics like the Jonah
in the Bible?
Time will tell.
Chisom Adindu writes from Lagos
