Ever wondered how much the big guys at the Central Bank of Nigeria make? You’re not alone. As the head of Nigeria’s central bank, the CBN Governor holds an important position overseeing monetary policy and ensuring price stability.
But with great responsibility comes great compensation, right? Mr. Olayemi Cardoso was appointed as CBN Governor in 2023, so how much does he earn in this role? His salary and benefits are not publicly disclosed, but the estimates reveal the CBN Governor’s is quite substantial. Keep reading to find out more about the CBN Governor, his responsibilities, the CBN Governor’s salary, and allowances.
Overview of the Central Bank of Nigeria and the Governor’s Role
The Central Bank of Nigeria (CBN) is the apex regulatory authority of the financial system in Nigeria. It was established by the CBN Act of 1958 and commenced operations on July 1, 1959. The CBN is responsible for ensuring monetary and price stability in Nigeria. It also promotes sustainable economic growth and full employment.
The Governor of the CBN is the Chief Executive Officer of the bank. He is nominated by the President of Nigeria and confirmed by the Senate. The Governor chairs the CBN Board of Directors and is responsible for the day-to-day administration and operations of the CBN.
Some of the key roles and responsibilities of the CBN Governor include:
- Formulating and implementing monetary policy to promote economic growth and employment in Nigeria. Monetary policy refers to the actions of the CBN to influence the availability and cost of money and credit in an economy.
- Issuing legal tender currency notes and coins in Nigeria. The CBN Governor oversees the entire currency management operations, including the printing of notes and minting of coins.
- Acting as banker and financial advisor to the Federal Government of Nigeria. The CBN extends temporary advances to the Federal Government to meet its short-term financial needs.
- Supervising and regulating all banks and other financial institutions in Nigeria. The CBN Governor is responsible for ensuring a safe, sound, and efficient banking system through regulation, licensing, bank examination, and enforcement of prudential standards.
- Serving as Chairman of the CBN Board of Directors. The Governor presides over the meetings of the Board and guides its decisions on monetary, banking, and financial system policies.
- Representing Nigeria at international monetary, banking, and financial fora such as the IMF, World Bank, African Development Bank, etc. The Governor promotes Nigeria’s economic interests on the global stage.
The CBN Governor is a very influential position in Nigeria’s economy. The person in this role can affect interest rates, exchange rates, lending rates, and more. As such, the Governor’s salary and compensation are quite substantial.
As the current Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso oversees the country’s banking and financial sectors. Appointed in 2023 by President Bola Ahmed Tinubu, Mr. Cardoso brings over 25 years of experience in finance and economics to the role. Gov Cardoso commenced his tenure on October 5, 2023
Governor Olayemi Michael Cardoso was born on the 10th of July, 1957, in Lagos, Nigeria. He previously served as the Lagos State Government’s Commissioner for Economic Planning and Budget; he helped Lagos State evolve into Africa’s megacity and Nigeria’s bustling commercial center. His career in the private sector included work in banking, stockbroking, consulting, and as the Chairman of the Citibank Nigeria Board, where he was responsible for the company’s growth, corporate governance, and financial stability.
He was also a member of the Cities Alliance’s Africa Think Thank Group, a board member of MRS Oil, the Chairman of EFInA, a member of the Lagos Business School’s advisory board, and the Chairman of the African Venture Philanthropy Alliance. He was also an Executive Lead at the Harvard Kennedy School Alumni Association, as well as the founder and co-chair of the Ehingbeti Summit, a Lagos State Economic Think Thank.
President Bola Tinubu appointed Cardoso as the Governor of the Central Bank of Nigeria on September 15th, 2023. The appointment was made for a five-year term, subject to Senate confirmation. Cardoso was officially confirmed as the Governor of the Central Bank of Nigeria on September 23rd, 2023.
Olayemi Cardoso received his education at St. Gregory’s College in Lagos and Corona School in Ikoyi. After that, he studied at Aston University in the United Kingdom, where he graduated in 1980 with a Bachelor of Science (B.Sc.) in Managerial and Administrative Studies. In addition, he pursued a Master’s degree in Public Administration at the Harvard Kennedy School of Government (HKS), where he was awarded the prestigious Michael Romer Memorial Scholarship and graduated in 2005.
The CBN Governor’s primary duty is to craft and implement monetary and fiscal policies that encourage economic growth and stability. Under Mr. Cardoso’s leadership, the CBN aims to curb inflation, stabilize the naira, drive economic diversification beyond oil, and accelerate financial inclusion through increased access to banking, loans, and other financial services for ordinary Nigerians. His policies and decisions as Governor have significant influence over Nigeria’s economy and financial system.
How Much is the CBN Governor’s Salary?
The Governor’s role is crucial to the economic stability and growth of Nigeria. As such, the salary and benefits are quite substantial, though still small relative to central bank governors in other major economies.
According to several reputable news reports, the Central Bank of Nigeria (CBN) governor receives a monthly salary of #2,480,212. This equates to an annual salary of of #29,762,544. The CBN governor also receives a number of allowances and benefits, such as a leave allowance, housing allowance, and furniture allowance. Every four years, the Governor is entitled to a vehicle allowance, which covers the cost of a new car. The CBN Governor is also entitled to medical and security benefits.
In addition to the preceding benefits, the CBN governor is entitled to a severance package upon leaving office. The severance package includes a lump sum payment equal to 300% of the Governor’s annual salary, as well as pension and medical insurance.
Breakdown of the CBN Governor’s Salary and Allowances
According to the CBN Act of 2007, the bank governor’s salary is determined by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC). According to various Internet sources, as of 2024, Mr. Cardoso’s annual basic salary is above ₦29 million. This amount is taxable and subject to deductions like pension contributions.
In addition to his basic pay, the CBN governor receives several allowances and benefits that make up the majority of his compensation package. These packages are said to include and are estimated to cost the following:
- Housing allowance of about ₦9 million per year for maintaining an official residence.
- Transport allowance of about ₦8 million per year for vehicle maintenance, fuel, and driver’s salary.
- Domestic staff allowance of about ₦3.6 million per year for household helpers, cleaners, and security.
- Utility allowance of about ₦3.4 million per year for covering expenses like electricity, water, telephone, and Internet services.
- Entertainment allowance of about ₦2.8 million per year for hosting official guests and events. Other fringe benefits like medical insurance, annual leave, pension, etc.
The CBN governor’s total remuneration is about ₦80 million per year, including benefits and allowances, placing him among the highest-paid public servants in Nigeria.
The salary of the CBN Governor is quite substantial, especially when compared to the earnings of other top government officials in Nigeria. As the head of the Central Bank of Nigeria (CBN), the CBN Governor oversees the country’s monetary and financial policies. This role comes with a great deal of responsibility, so it’s no surprise the pay is substantial.
According to reports, the current CBN Governor, Mr. Olayemi Cardoso, earns an annual salary of over ₦80 million. This includes basic pay as well as various allowances like housing and transportation. In comparison, Nigeria’s President earns around ₦65 million per year. Members of the National Assembly, which includes Senators and House of Representatives members, earn between ₦9 to 20 million annually.
Clearly, the CBN Governor’s pay dwarfs that of nearly every other public sector role. The salary is meant to attract top talent to this important position and compensate them for the complex nature of the job. The CBN Governor is tasked with regulating the country’s banking system, controlling inflation, stabilizing the Naira, and spurring economic growth. These responsibilities require an extremely qualified candidate with years of experience in banking, finance, and economics.
While government officials like legislators and the President play an important part in Nigeria’s leadership, the CBN Governor’s role is undoubtedly one of the most vital. The salary, though sizable, suits the immense duties and expectations that come with being the head of the Central Bank. For guiding Nigeria’s financial system and policies, ₦80 million a year seems fitting remuneration for such an essential position.
Controversy Over the CBN Governor’s Salary
The salary of the CBN Governor has been a controversial issue in Nigeria for many years. As the head of the apex bank, the CBN Governor wields enormous power over monetary and fiscal policies in the country. However, his salary and benefits have come under intense scrutiny, with many believing it is too excessive.
According to reports, the CBN Governor currently earns an annual remuneration of over 80 million Naira, in addition to lavish benefits like an official residence, chauffeured vehicles, foreign medical coverage, and domestic staff. This compensation is vastly higher than government officials like ministers, senators, and even the President. Critics argue this salary is unjustified, given the majority of Nigerians live below the poverty line.
The Chairman of The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) stated in November 2022 that the Governor of the Central Bank of Nigeria’s (CBN) severance compensation surpassed that of the President. Mr Mohammed Bello, Chairman of the RMAFC, made this remark in a Channelstv interview that was monitored by Daily Post.
Mr Bello made no mention of the President’s pay or severance packages but did remark that no public officer’s compensation should exceed that of the President. “I don’t believe that any public officer, whether of CBN or other agencies, should have a package higher than that of the President.” He went on to say, “I think this is not good for Nigeria, the President is the President, and there has to be a way where these things are adequately harmonized. In a manner, some chief executives will not get a salary higher than that of the President or governors.”
Supporters counter that the CBN Governor’s salary needs to be competitive to attract top talent and expertise to manage the economy. The role requires specialized knowledge and experience in banking, finance, and economics. A high salary also reduces the motivation for corruption. However, others say many qualified Nigerians are willing to serve in the role for a fraction of the current pay.
There have been several calls to review and reduce the CBN Governor’s compensation and align it more with salaries of comparable public sector roles. However, there has been little political will to implement major reforms. For now, the generous salary and benefits of the CBN Governor remain intact, ensuring it will likely continue to court controversy for years to come.
Frequently Asked Questions
Frequently asked questions (FAQs) about the CBN Governor role provide insights into this important position. Let’s take a look at some of the most common questions.
Who is the first female CBN governor in Nigeria?
As of 2024, Nigeria has not yet had a female CBN Governor. All CBN Governors to date have been male. In 2014, Sarah Omotunde Alade, OON, served as acting Governor of the Central Bank of Nigeria during the suspension of Sanusi Lamido Sanusi. She was appointed to the position by President Goodluck Jonathan on February 20, 2014. She held this position until Godwin Emefiele’s appointment in June 2014. From March 26, 2007, to March 22, 2017, she served as the Central Bank of Nigeria’s deputy governor (Economic Policy).
How long is the CBN governor’s tenure in Nigeria?
The CBN Governor is appointed to a five-year term, with the possibility of renewal for another five-year term. The tenure is relatively short to avoid too much power being concentrated on one individual.
Who appoints the CBN governor in Nigeria?
The CBN Governor is appointed by the President of Nigeria, with confirmation by the Nigerian Senate. The President has the power to appoint and remove the CBN Governor.
Which Ministry is the CBN Governor under?
The CBN Governor is under the Ministry of Finance. The 1997 amendments brought the CBN back under the supervision of the Ministry of Finance.
How many departments are there in CBN?
The CBN has several departments and directorates to oversee its operations. The Central Bank of Nigeria is made up of twenty-nine departments.
Who is the first CBN Governor?
The first Governor of the Central Bank of Nigeria was Mr. Roy Pentelow Fenton, he was appointed the first and only expatriate Governor of the CBN. Mr. Roy Pentelow Fenton served from July 24, 1958, to July 24, 1963.
Who is the longest-serving CBN governor?
The longest-serving CBN Governor was Alhaji Abdulkadir Ahmed, who served for 11 years from 1982 to 1993 under the military regime. After Alhaji Abdulkadir Ahmed, Godwin Emefiele is the second longest-running Governor, who served as the CBN Governor for 9 years from 4 June 2014 until his suspension by President Bola Tinubu on 9 June 2023.
How Many Deputy Governors are in CBN?
The CBN currently has 4 deputy governors. They each oversee different aspects of the CBN’s operations. For example, there is a deputy governor in charge of Operations, Corporate Services, Economic Policy, and Financial System Stability. The deputy governors report directly to the CBN Governor.
How many floors is the CBN building?
Julius Berger was tasked with rebuilding the Central Bank of Nigeria’s Lagos Office in the heart of Lagos’ bustling financial district. The project included demolishing the current 11-story building and constructing a new 23-story office complex with a basement. Currently, the CBN has 23 floors and a basement.
So there you have it, the salary and compensation details for the most powerful economist in Nigeria. While the CBN Governor’s salary may seem excessive to some, you have to admit that steering the massive ship that is the Central Bank of Nigeria is no easy task. With over 5,000 employees and responsible for shaping monetary policy, ensuring price stability, and regulating the banking system, the CBN Governor’s role is not for the faint of heart.
Though the perks and privileges that come with the job are quite attractive, the immense responsibility to promote sustainable economic growth and development ultimately rests on the shoulders of Olayemi Cardoso. Next time you criticize the CBN’s policies or actions, spare a thought for the man at the helm making some very difficult decisions on behalf of all Nigerians.