Emefiele Pumped 10trn Into Economy Through Quasi-Fiscal Activities - Cardoso

By Mohammed Bello Doka

In a shocking revelation, Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria, has accused his predecessor, Godwin Emefiele, of injecting a staggering N10 trillion into the economy through quasi-fiscal activities during his tenure. Cardoso made this accusation during the58th Annual Dinner of the Chartered Institute of Bankers of Nigeria held in Lagos on Friday.

Cardoso highlighted that the N10 trillion was funneled into the economy through various intervention programs. Expressing his concerns, he stated, "I am aware that events over the past few years have also put the CBN in a bad light. These issues can be attributed to various factors such as corporate governance failures, diminished institutional autonomy of the Central Bank of Nigeria, a deviation from the core mandate of the Bank, unorthodox use of monetary tools, an inefficient and opaque foreign exchange market that hindered clear access, and a foray into fiscal activities under the co..."

The accusation by Cardoso raises questions about the appropriateness and transparency of the monetary policies implemented during Emefiele's tenure. Quasi-fiscal activities refer to actions taken by the central bank that have fiscal implications, blurring the lines between monetary and fiscal policy.

The N10 trillion injection into the economy through intervention programs has sparked a debate among economists and financial experts. Some argue that such measures may have provided short-term relief but could have long-term consequences for the economy. Others believe that these interventions were necessary to stimulate growth and address pressing economic challenges.

Emefiele's tenure as the Governor of the Central Bank of Nigeria was marked by several controversial decisions and policies. While some praised his efforts to stabilize the economy during challenging times, others criticized his unorthodox approach and questioned the effectiveness of his strategies.

As the allegations continue to unfold, it remains to be seen how this revelation will impact the reputation of the Central Bank of Nigeria and the country's overall economic stability. The public awaits further clarification and response from Emefiele and other relevant authorities regarding the allegations made by Cardoso.