By Dayo Omoogun
The audited Financial Statements of Nigeria’s apex bank-the Central Bank of Nigeria-were made public last week and one could not but acknowledge that the glorious comeback of a once foremost, respectable and dependable public institution is afoot.
The on- going transformation at the Bankers’ Bank is clear evidence that a focused leadership can make an impactful difference within the time space of two years. Indeed, the President Bola Ahmed Tinubu has only been in office for 2 years but even more instructive is the fact that Governor Cardoso and his team have actually been in office for about 20 months.
It is within this short period that a backlog of forex transactions have been cleared, the criminal arbitrage system that induced an economic hemorrhage on the economy has been abolished, the Nigeria FxCode which fosters orderliness, clarity and safety in the sector has been introduced, among other initiatives.
Since the assumption of the Cardoso- led leadership, the CBN has suddenly become firm, focused and more mandate-oriented compared to what obtained during its most recent past under the Emefiele leadership. It is therefore not surprising that the results contained in the Financial Statements validate the new leadership and its policy thrusts.
Taking excerpts from the statement, some of the heartwarming outcomes for the 2024 year include, the reversal of the negative bottom line of the preceding year from a humongous N1.3 trn loss to a surplus of N165 billion, the increase in external reserves from N36.6 bn to N38.6bn. The loans and receivables account reduced by over 20 percent from N16.1 trillion to 11.9 trillion. Also, the huge reduction in it’s derivative contracts stock though accompanied with some substantial loss is surely a remarkable net value addition, worthy of commendation.
None of these achievements dropped fortuitously on their laps but are consequences of several factors primed by the leadership- it’s policies, body language and clear articulations.
The increased Federal Government receipts, diaspora remittances and portfolio investments which made the external reserves increase possible, are all pointers to the increased confidence in the economy engendered by the perceived sanity and transparency in the system. There is a need to deliberately, consistently reach out and court our Diasporans and provide an attractive environment that eases their funds’ repatriation and ensures safety for their investments. A dispute resolution system that ensures that justice is not only done but seen to be done and timeously too can be a huge boost in this regard.
A lot of shrewd, cost cutting measures were not only put in place but strictly adhered to and enforced. This is a measure that needs to be sustained.
Apart from avoiding fresh direct intervention funding, a lot of the funds that had earlier been advanced under the previous dispensation were recovered. This is consistent with best practices in loans management and further measures should be put in place to expedite recoveries and stamp out the notion that loans are some kind of national cake largesse that is free for beneficiaries. Where necessary and cost- effective, unyielding defaulters should be prosecuted especially where their collaterals are inadequate or not easily accessible.
The spike in the cost of managing liquidity through Open Market Operations from N1.5 trillion to N4.5trillion is worrisome and should engage the attention of the management to ensure a much reduced outlay as much as possible.
The Central Bank should draw up a programme of at least 6 months to put an end to the double note we currently parade for most denominations of our currency. That is a development that has remained since the President Buhari era and has remained inchoate till this day.The current state of affairs is confusing and uncomplimentary to say the least.
In all of this, one low point that Nigerians are worried about is the value of the naira which as it currently stands is not within the exclusive purview of the bank. Maybe we can ask that the bank in conjunction with other stakeholders should enable the manufacturing sector for higher productivity through relevant incentives and support. which will ultimately lead to currency value appreciation.
The bank should be deliberate in its self – promotion by embarking on rebranding.
If anybody is still in doubt as to the effectiveness of the CBN’s reforms under the leadership of Dr. Olayemi Cardoso, spite, mischief and malice can only be the reason.
In spite of the remarkable progress that the bank has made which is quite commendable, there is definitely a lot of work ahead not only to return to its prior, rightful pride of place but also to bring the national economy to an even keel.