22nd March, 2024
Opinion By Bello El-Yakub
The three toughest jobs in Nigeria are the job of President of Nigeria, the Governor of the Central Bank and the Group Managing Director of the NNPC.
On May 29, 2023, Muhammadu Buhari concluded his tenure as president and Bola Tinubu took office. Barely a week after assuming office, President Tinubu removed Godwin Emefiele as CBN Governor. Emefiele left behind a bartered economy and a backlog of dollar denominated obligations long overdue for settlement.
Six months ago, President Tinubu announced the appointment of Yemi Cardoso as CBN Governor and six months later it is clear to all that the appointment was a spectacular master stroke deserving of applause.
I have been a critic of President Tinubu but for once I am compelled to acknowledge that he has handed our economy to the best man for the job. The entire country was relieved to hear yesterday that all the foreign exchange obligation backlog of over $7 billion is now cleared. Amazing. Very quietly and very diligently Yemi Cardoso has been at work grinding out in the CBN Towers. In six months of his time at the CBN, Yemi Cardoso has granted two interviews at the most. He doesn’t talk. He doesn’t follow the president around on every foreign trip. He is a focused man who understands his mandate and he is working. Even when the Naira almost hit 2000 to the dollar no Nigerian could come out to blame Cardoso personally. Everybody gave him the benefit of the doubt. Right now, the Naira is gaining strength and speculators are now running for cover. President Tinubu and Yemi Cardoso are almost vindicated.
Beyond clearing the FX backlog he has resolved the mess with Union and Titan Banks. He has helped in cleaning up AMCON and getting a proper management team in place. He has stabilized the interest rate regime to tame inflation and most importantly has improved the morale of staff in the CBN.
However, while Buhari and Emefiele’s terms have ended, the leadership at NNPC remains a concern. Mele Kyari, the current Group Managing Director, presents a stark contrast to Yemi Cardoso. Governor Cardoso’s success highlights the shortcomings of NNPC’s leadership. Under Kyari’s leadership for the past five years, NNPC’s crude oil production has significantly declined. This is a verifiable fact. Unlike the focused approach of Governor Cardoso, Mr. Kyari frequently makes unsubstantiated pronouncements. He could benefit from adopting a more reserved demeanor. Additionally, his constant presence on the President’s foreign trips raises questions about his priorities. His public displays of loyalty, such as the incident in India, come across as unprofessional. It’s difficult to imagine Governor Cardoso engaging in similar behavior. Mr. Kyari has made repeated inaccurate statements regarding the state of refineries and now about the public sale of NNPC shares. His actions seem more focused on self-preservation than on the national interest.
Furthermore, his reported resistance to divestment transactions contradicts his stated desire for foreign investment. Mele Kyari embodies the shortcomings of the previous administration. President Tinubu should consider a replacement for Mr. Kyari who can emulate the success of Governor Cardoso. NNPC’s importance demands strong leadership. Change is necessary. Buhari is gone. Emefiele is gone. Kyari’s replacement is overdue.
Bello El-Yakub, a public analyst, wrote in from Kaduna, Nigeria.