By 
Olayemi Cardoso, the new Governor of the Central Bank of Nigeria (CBN), appears to be stepping away from several significant development finance projects initiated by his predecessor, Godwin Emefiele. This shift could have implications for the CBN’s interventionist programs, which played a role in helping Nigeria emerge from economic recession twice between 2016 and 2020.
Cardoso, who assumed office in September 2023, made it clear during his confirmation before the Senate that he intended to discontinue certain policies implemented by the Emefiele-led administration.
Insiders familiar with management meetings held by Cardoso and his deputies reported that he expressed his intention to terminate several initiatives, including the N63 billion Centre of Excellence program, Anchor Borrowers’ Program (ABP), eNaira (a financial inclusion instrument), and the currency redesign policy, which was introduced to combat banknote counterfeiting and vote-buying during the last general elections.
An anonymous source within the central bank revealed that Cardoso had concerns about the ABP due to reported cases of fraud and indicated a desire to end state involvement in the program. He believes that many of the unconventional CBN policies created to support the fiscal side and establish buffers for the national economy are not aligned with public interests.
The new CBN leadership has communicated its intention to concentrate on the core responsibilities of the central bank, which include maintaining monetary and price stability, promoting a sound financial system, and controlling exchange rates.
One anonymous source stated, “The man has canceled many things, including state engagements. They want to focus on the core mandate of the CBN and promote pro-masses policies.”
Anchor Borrowers’ Program (ABP):
The ABP was initiated by former President Muhammadu Buhari in 2015, aiming to uplift small farmers out of poverty and create job opportunities. The program sought to reduce Nigeria’s substantial importation bill. Despite the lofty goals, many farmers have struggled to repay ABP loans, potentially affecting the nation’s foreign reserves as the country returns to importing items like rice, wheat, milk, and fish. The CBN’s 2022 financial report revealed outstanding ABP loans of N1.079 trillion as of February 28, 2023, with approximately N0.960 trillion due for repayment. Roughly N502 billion has been recovered, leaving over N5 trillion under moratorium.
Under ABP guidelines, farmers are required to repay their loans with produce, covering the principal and interest, to an anchor who then deposits the cash equivalent into the farmer’s account.
Centre of Excellence:
The Centre of Excellence project aimed to bolster the capacity of Nigerian universities, offering post-graduate studies in financial-related courses and supporting the Tertiary Institutions Entrepreneurship Scheme (TIES). While it initially focused on nine federal universities, including the University of Ibadan, the University of Nigeria, Nsukka, and Ahmadu Bello University, some have already established operational centers.
eNaira:
The eNaira digital currency was introduced to promote financial inclusion, enhance the payment system, and facilitate economic growth. However, Governor Cardoso appears to be reconsidering the project’s role in achieving these objectives. President Buhari, during the launch in October 2021, highlighted the benefits of eNaira, including access to capital, financial services, secure diaspora remittances, and reduced fraud risks due to traceability.
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