OPINION: CBN’s Transparent Recruitment Of 16 Directors Signals Cardoso’s Break From The Past

The central bank of any country is a uniquely influential institution. Due to its mandate of maintaining monetary and financial stability in line with the government’s economic vision, everything it does can impact everyone. That is why PhD economists and experienced bankers are the top picks for heading the banks.

This is why appointments at the central bank are always of interest to institutions, groups, and individuals. In Nigeria today, the Central Bank of Nigeria is an institution of utmost public interest due to the state of the economy and the ongoing economic and financial reforms of President Bola Tinubu’s administration.

But sadly, in Nigeria, appointments into the CBN are not seen as part of the building block for the country’s economic rejuvenation. The CBN is seen only as a juicy institution where the elites scramble for a seat at the table and where politicians invoke Federal Character provisions of the Nigerian Constitution to put their cronies in positions to access the wealth of the nation.

Whereas, in other climes where economic engineering is taken seriously, only the most talented look forward to a career in the institution. A statement about recruitment into the Bank of England (similar to that of the US Federal Reserve) describes the bank as an “intellectually stimulating” environment that is “highly professional.”

It further states that “While organisations in the private sector are focused primarily on profits, the ultimate objectives for us are always the quality of our thinking, the rigour of our analysis, and the overall deliverables in line with our vision of promoting the good of the people of the United Kingdom by maintaining monetary and financial stability.”

Emphasising the importance of competence and professionalism for the bank, it says, “The issues we deal with daily have implications for everyone in the country.” This statement is as true for the United Kingdom as it is true for Nigeria today.

This is why the Central Bank of Nigeria, under Governor Yemi Cardoso, has broken with past tradition. Cardoso, like his counterpart at the US Federal Reserve, Jerome H. Powell, is confronted by an economic reform that has brought financial hardship to the majority of citizens due to rising inflation.

But Cardoso’s reforms at the CBN portray a governor who takes his job seriously and is determined to deliver for the good of the country.

Aside from the monetary policy reforms of the CBN, many will welcome the thrilling news that the CBN recently recruited 16 new directors through a highly competitive process and not through arbitrary promotion. These appointments, which were more of an internal promotion exercise, took effect on March 3, and they affected critical departments of the apex bank such as Monetary Policy, Trade and Exchange, Banking Supervision, Payment Systems, and Consumer Protection, among others.

The CBN reportedly engaged the global consultancy firm PricewaterhouseCoopers (PwC) to conduct the selection process for the directors from among top officials of the bank who applied, following an internal advertisement, to ensure only the most competent are elevated. It is highly commendable and in line with global best practices for central banks. It is certainly the type of promotion process needed by the CBN at this time.

Reports indicate that the PwC conducted a two-phase appointment process designed to eliminate bias in recruitment and ensure the process is transparent. Many would wish that all critical national institutions in the country could also conduct their recruitments in this manner to ensure the right persons, no matter their ethnicity or religion, are put in charge.

Usually for central banks, the recruitment process will include competency-based interviews, ability testing, occupational or motivational questionnaires, written assessments, case studies, and/or presentations. Anyone who scales through all these is an asset to the institution and must not be denied the chance to help the country because of their religion or where they come from as long as they’re Nigerians.

No one will be surprised by reports that the staff of the bank commended the selection process as objective, transparent, and merit-based. It is a far cry from the tradition where directors are arbitrarily selected because of their connections with VIPs or because they’re favoured by the CBN governor.

This break with tradition is widely seen in economic and financial circles as a step towards strengthening the governance and operational efficiency of the apex bank. It signals a significant internal restructuring aimed at enhancing the bank’s operational efficiency and regulatory oversight. An internal memo quoted by Premium Times said the appointments were aimed at “achieving the bank’s vision and mission for long-term success.”

A look at some of the new appointees also shows that diversity was one of the selection criteria—a point that can never be overemphasised in a diverse country such as Nigeria. While economic policy should be driven by capacity rather than regional or ethnic consideration, inclusivity is essential in a multi-ethnic and multi-religious country like Nigeria.

Mallam Abdullahi Hamisu, the newly appointed director of banking services, is from the north of the country. Before his appointment, he served as coordinator of banking services under the Operations Directorate. He now occupies a position that is pivotal to ensuring smooth banking operations across the nation.

Sike Rita Ijeoma, one of the appointees from the South East, is the director of the Financial Policy and Regulation Department. She was formerly the director of banking supervision at CBN. Her expertise and leadership earned her a new position, where she is expected to significantly push the CBN’s mission of maintaining a stable and efficient financial system in Nigeria.

Akinwunmi Olubukola Akinniyi, from the Southwest, is the director of the Banking Supervision Department. He was an assistant director in the Payments System Management Department of the CBN before his new appointment. He is credited with leading the team responsible for the formulation of payment system policies and facilitating stakeholder consensus on payment system development strategy in Nigeria. He also participated in major reforms in the Nigerian Payments System, including the implementation of the Nigeria Central Switch, the Cashless Policy, and the Payments System Vision 2020.

Oboh Victor Ugbem, a senior development economist, is the new director of the Monetary Policy Department. Victor, who is from the south-south of the country, has over 20 years of experience in the areas of monetary, financial, and agricultural policies, as well as private sector development.

He was formerly an assistant director in the CBN, providing technical support to the design and implementation of the bank’s policies.

In what appears to be a reflection of the prominent role women now play in the board rooms of commercial banks in the country, the CBN has promoted five women to the position of director in charge of crucial departments. They are Yusuf Rakiya Opeyemi, Director of Payment System Supervision; Mrs Jide-Samuel Omoyemen Avbasowamen, Director of Information Technology; Aisha Isa-Olatinwo, Director of Consumer Protection; Mrs Sike Rita Ijeoma, Director of Financial Policy and Regulation; and Dr Adenike Olubunmi Ojumu (Medical Services).

It is hoped that the processes leading to the appointments of these 16 directors will become a tradition to ensure that only bright minds are put in charge of executing the mandates of the apex bank. For the sake of Nigeria and Nigerians.

– Tajudeen Suleiman is an Abuja-based Journalist and can be reached via tajudeensuleiman@yahoo.com

OPINION: CBN’s Transparent Recruitment Of 16 Directors Signals Cardoso’s Break From The Past is first published on The Whistler Newspaper