A group under the aegis, Nigerian Unemployed Youth Vanguard, has called on President Bola Ahmed Tinubu to summon courage and remove Mr. Olayemi Cardoso as Governor of the Central Bank of Nigeria (CBN).
The group in a petition addressed to President Tinubu and signed by its National Coordinator, Comrade Danesi Momoh and General Secretary, Igwe Ude-umanta, noted that the country’s economic vision could no longer be guaranteed under Cardoso, even as they reminded President Tinubu of his promise to remove any appointee performing below expectation.
The petition sighted by newsmen on Wednesday in Abuja, said there was need to totally restructure leadership of the CBN for effective delivery. It noted that even though the naira was gaining some strength, it was still the second worst performing currency in the world after the Lebanese Pound.
The petition partly reads: “We however know that as long as the people you have placed in very critical positions cannot deliver, all your efforts will be in vain and the blame will be on you as the captain of the ship. Therefore we urge you to spare no one who is a clog in the wheel of the progress of your government.
“After a critical examination of the report of our organization’s Technical Team on National Economic Performance and Projections, we are constrained to inform you that under the current policies of the CBN, Your Excellency’s economic vision for the country cannot be guaranteed. This is in spite of whatever report or excuses the CBN and your Economic Team may be presenting to you. After all, we do not expect them to fail the examination they have set for themselves.
“You will recall that between the end of December 2023 to end of February 2024, the US dollar went from N907 to about N1900 before the outrage led to a number of fire brigade and knee jerk policies that have been deployed to arrest it. Thankfully, it has reduced to N1,440.38 as at today. How the Naira became very weakened is the fault of the CBN who amongst other things could not exercise its regulatory authority over the commercial banks that hoarded forex and their agents at the parallel market. And till date, no bank has been sanctioned.
“It must also be noted sir, that though Naira is gaining some strength, the irreducible minimum expectation of Nigerians is for US $1 to exchange for N900 by the end of the first quarter of 2024, which is now a mirage. Prices of commodities have also remained as high as they were. This is clearly due to the fact that the gain Naira is making against foreign currencies is not a product of a coordinated economic policy. It is the result of an unsustainable quick fix.
“Your Excellency may not also be aware that the CBN Governor, Mr. Cardoso has a correct idea that Naira is undervalued. But unfortunately, he does not know the exact value of the Naira. As our monetary and fiscal physician, we should all be worried about how he can treat an ailment he cannot correctly diagnose. We do not deserve a CBN Governor who cannot place a correct value on our currency within some parameters of estimation.
“Your Excellency should also note that the Naira is still the second worst performing currency in the world after the Lebanese Pound; at least, by the last assessment released in February 2024. Also in January, the International Monetary Fund’s review of Nigeria’s economic growth projection indicated a downward trend.
“We do not also know whether the CBN Governor has revealed to Mr. President the names or identities of those who forwarded $2.7 billion fraudulent Foreign Exchange liabilities to the Federal Government, which a CBN audit exposed. This also may speak to the issue of transparency in the CBN. Are we back to Mr. Godwin Emefiele’s regime of alleged opaqueness and corruption?
“Recently, the Monetary Policy Committee released new Monetary Policy Rate and Cash Reserve Ration which we consider unwitting death sentences on investments and productivity. For the first time in known history, Monetary Policy was raised by 400 points. No investor can borrow from the commercial banks today, except it is for a criminal venture.
“And assuming anyone borrows to invest, the interest rate will be transferred to production cost thereby giving rise to Cost Push Inflation. Consequently, the inflation that is said to be tackled is thereby induced. Also by the Cash Reserve Ration, banks are stifled of credit. This kind of economics will widen unemployment and suffocate Nigerians, especially the unemployed and other poor citizens who we represent.
“Mr. Cardoso is satisfied that he has attracted some hot money forex through Open Market Operation by selling Treasury Bills to some Foreign Portfolio Investors. This has no place in the sustainable economy the country needs, because portfolio investors continue to look for better deals from desperate economies. The CBN Governor is yet to state clearly how he intends to garner Foreign Direct Investments which is what is needed for economic redirection.
“Mr. President, you promised Nigerians on your honour and we believe you that any appointee that performs below expectation will be sacked. It is left for you to decide that this is the best you want so that in our further engagements, you will not be excused from any obvious failure as far as this is concerned. And we wish to sate that it could be argued that Mr. Cardoso has spent only 6 months. These 6 months has exposed us to what is to come under him. An ailment is better treated at very early stages.
“Recall that Senator Adams Oshiomhole appeared to have seen the unfitness of Mr. Cardoso. Oshiomhole went further to question Cardoso’s Curriculum Vitae having been part of banks that failed due to insolvency, whether it was at Citizens Bank or at Spring Bank. It is clear that the Central Bank of Nigeria is failing in its mandate under Cardoso.
“While this may not be an easy decision, we urge Your Excellency to have the courage you are known for and remove Mr. Olayemi Cardoso as Governor of the Central Bank of Nigeria and to also restructure the entire leadership of the apex bank.”
