Following the suspension of Godwin Emefiele as the Governor of the Central Bank of Nigeria, a financial expert, Mr Mike Eze, Managing Director of Crane Securities Limited, has stated that the financial market will remain stable until the investigation concludes and sufficient information to inform the market reactions is provided.
President Bola Ahmed Tinubu, Friday suspended the Governor of the apex bank, Godwin Emefiele, with immediate effect.
“The CBN is the highest financial institution in the country and the governor works with about three deputies who help him in fashioning out policies and most of these policies were hijacked by politicians. So, most of his policies were politically motivated.
“Politicians are the ones that destabilise the economy, not Emefiele. The capital market does not react on hearsay, the market will have enough information before reacting, so, I believe the market will be stable until the outcome of the investigation,” he said.
The Executive Vice Chairman of Hicap Securities Limited Mr David Adonri, said even though the secondary market benefited from Emefiele’s policies, the primary market did not. He said:
“The impact on the secondary market was impressive but there was no impact on the primary market which has remained inactive. We hope that his exit will bring a much-needed positive impact on the primary market and further boost the secondary market.”
Adonri further stated that Emefiele’s exit and the fulfillment of Tinubu’s campaign promises for the economy are expected to help boost the forex market.
“Those factors are less importation and more exportation and more capital inflow either through direct investment, portfolio investment, or diaspora remittances.
“However, if the multiple exchange rate regime run by Godwin Emefiele is discontinued and replaced by a single forex regime, that can assist the forex market to boom,” he said.