The Central Bank of Nigeria (CBN) has been caught up with some dramatic wind in some strategic positions, but fiscal cum economic policy remains paramount.
The Nigerian President, Muhammadu Buhari did not only appoint Aisha Ahmad as the new Deputy Governor of CBN; but there were also other four members of the Monetary Policy Committee (MPC) of the CBN who were appointed.
Despite looking youthful, the Niger-born Aisha has been tipped as a suitable replacement by relevant stakeholders for Sarah Alade, Ph.D., who retired from CBN as Deputy Governor in March 2017.
The reshuffling of the Monetary Policy of CBN and the appointment of the new Deputy Governor may not be the too rationalized if fiscal policies continue to cripple the economy.
Fiscal policies are one of the strategies to reshape the economy either for good or bad. Hence Nigerians are more concerned by competence and role of the appointees rather than their resumes will show some wealth of experience.
Two of the appointees were from academia while others aren’t, but their economic background in economics, finance, and experience working with financial institutions are considered worthwhile.
“Putting people in CBN should not be because they worked in banks before. The important thing should be for the people to understand monetary policy,” says Paul Alaje Lead Economist, Financial, and Investment Consultant, SPM Professionals.
Some of the appointments appear to be based on politics. Apart not being famous, they seem not to have done sufficient work that one can lay one’s hands on,” Alaje adds.
The position of a Deputy Governor of CBN doesn’t call for explicit decision making without the consent of the Governor of CBN, by implication the Deputy Governor acts on what the Governor instructs, although with some level of influence.
Monetary policies remain critical in Nigeria, and that is one of the focuses of the new MPC appointees Adeola Adenikinju, Robert Asogwa, Asheikh Maidugu, and Aliyu Sanusi.
According to the CBN Act MPC has 12 members comprising the CBN Governor, four Deputy Governors, 2 Executive Directors, two other Directors appointed by the CBN governor and three appointees by the President.
A monetary policy analyst and an Associate Professor of Economics, Department of Banking and Finance, Nasarawa State University, Keffi, Uche Uwaleke, who reportedly spoke with Premium Times believes that the new appointees are sure bet for Nigeria.
“MPC requires economics and finance experts. These people are fit for purpose, as they come from different rich backgrounds and areas of specialization.
There is a person with a debt management policy experience, who will readily understand the implications of monetary policy on the debt market and economy.
There is another person with UNDP background, who has knowledge on poverty alleviation issues and how monetary policy affects (economic) policy and development.
The the new CBN Deputy Governor resumes office immediately while the new MPC appointees are expected to return office in January, while their predecessors leave office in December.