Godwin Emefiele, CBN Governor
CBN Gov. Godwin Emefiele
The head of the Central Bank of Nigeria, CBN, Godwin Emefiele is likely to exit the bank in June, beginning with a leave from March, 2019 before ending his five-year tenure in June.
His stepping down at the end of his five-year term, is a move that could alter the path for interest rates and the currency, sources said on Monday.
According to TVC News, Emefiele, sources noted has kept interest rates high at 14 per cent for over two years to tighten liquidity and support the naira after a crisis forced the central bank to devalued the currency. The bank has since introduced multiple exchange rates to prop up the naira.
It was not clear when Emefiele’s replacement would be appointed but central bank governors in Nigeria typically go on a 3-month leave before the end of their tenures.
The central bank has however declined to comment on the issue.
Muhammadu Buhari secured a second term in office as Nigerian president in last month’s election that was closely-fought on the economy, recovering after it entered into recession in 2016.
Several candidates have been touted to replace Emefiele. Among them is the head of Nigeria’s “bad bank” AMCON, Ahmed Kuru, who led the sale of the country’s nationalised banks, sources say. Also Aisha Mohammed, deputy governor of the apex bank is in the running.
Whoever succeeds Emefiele would be expected to continue to keep the naira stable to attract foreign investors, a policy which Buhari has backed.
Foreign investors have been buying Nigerian bonds over the past six months owing to the stable currency and as tight liquidity have kept yields attractive, as high as 15 percent.
