Oshiomhole Criticizes Cardoso’s Appointment, Cites Past Bank Liquidations

Adams Oshiomhole recently criticized the appointment of Yemi Cardoso as the Governor of the Central Bank of Nigeria (CBN), arguing that Cardoso's track record of managing distressed banks makes him unsuitable for reviving the Nigerian economy. This comment is particularly relevant in light of recent developments where Cardoso's CBN allowed the closure of Heritage Bank, marking a significant shift from the policies of his predecessor, Godwin Emefiele, who often intervened to prevent banks from failing.

Under Cardoso’s leadership, the CBN has demonstrated a willingness to let struggling banks fail if they cannot recover, as seen with Heritage Bank. This approach contrasts sharply with Emefiele’s tenure, during which the CBN frequently bailed out distressed banks to protect depositors, shareholders, and the broader financial system. Emefiele's interventions often included capital injections and management changes aimed at preventing bank collapses, which critics argue created a moral hazard by shielding irresponsible bank managers and shareholders from the consequences of their actions.