Nigeria's central bank governor designate, Emefiele resumes work on Monday

Emefiele, CBN gov designate

Godwin Emefiele, Nigeria’s central bank governor designate is expected to formally assume duty at the headquarter of the regulator bank in Abuja on Monday. The resumption of Emefiele at the regulatory bank will mark the end of an era, especially the end of tenure of controversial erstwhile governor, Lamido Sanusi who was suspended by President Goodluck Jonathan in February in what many observers of the system said was attempt to thwart investigation into the allegation of missing $20 billion oil revenue.
Emefiele appointment was confirmed by the senate in March, but have to allow the tenure of Sanusi to expire by June 2, before assumption of office.
All eyes are on the man, especially giving the controversial manner his predecessor was thrown out of office and the geopolitical underplay in his appointment. Emefiele is from the Niger Delta, same region the president comes from.
Industry observers expect him to gird his loins for some drastic change in the industry. Against the backdrop of declining loan portfolio and inability of the financial sector to assist Small and Medium size businesses in terms of financing, Emefiele is expected to direct his energy on policies to redress this. Equally of importance is the need to ensure monetary policy stability and a safe and sound financial sector through constant monitoring of operators ensuring that the experience of 2009 does not repeat itself.
At his screening by the senate in March, Emefiele has vowed to resist attempt to devalue the nation’s currency, saying such will hurt the economy.
“We will ensure that during this period, if approved by the Senate, that whatever monetary policy decision we take will be those that will lead to improvement in the level of employment,” he said, warning the country was facing an “employment emergency”.
“Growing the economy of Nigeria is a very important assignment other than just a core mandate of ensuring that we have a stable environment.”

Sanusi, outgoing CBN governor

Many industry players are asking the new governor to sustain the reform embarked on by Sanusi irrespective of the manner he was sack from the job and ensure that only and focus more of macroeconomic stability, using best of monetary policy instrument to achieve that.
Although, prior to his appointment and confirmation, he has spend more than half a century in the banking industry, yet his view on major issues are not known beyond the fact that he rose to become the chief executive of Zenith bank after the exit of Jim Ovia.
Many believe that he may turn out to be a yes man to the president who appointed him considering the circumstance of his appointment, but he has his reputation to protect.
Already, market watchers are holding their breath in anticipation what policy direction the central bank will take in the next couple of days ahead.
The naira closed at 162.75 to the dollar at the interbank market on Friday and 155.73 at the official window. The naira has lost around 2.68 percent year-to-date at the interbank market and relatively stable at the official window. Interest rates on the interbank has also be stable all year due to liquidity tightening by the Monetary Policy Committee (MPC).