Bismark Rewane, Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, has applauded the ongoing reform efforts at the Central Bank of Nigeria (CBN), while cautioning that Nigeria’s long-term stability depends on reducing income inequality and ensuring an equitable distribution of economic gains.
Speaking in a recent interview on Arise Television and monitored by News.ng, Rewane said current CBN Governor Olayemi Cardoso has gone beyond policy announcements by overhauling key institutional structures within the bank and the financial markets.
According to him, the changes were long overdue.
“So, what Cardoso has done is to implement reform. So, the policy changes were announced. It could have been poorly implemented, and you get a different outcome,” he said.
The renowned economist argued that one of the most important steps taken was addressing internal dysfunction within the apex bank.
“So, what he has done is to reform the institution, reform the markets, and then now go to the next stage,” he explained. “So, what do I mean by reforming the institution? The central bank, from what we hear, was a cesspool. Before this administration, this same team came in. It was just an open cesspool out there. Now, we have to stop that.”
He highlighted the renewed focus on transparency and modern market tools as essential to restoring credibility in Nigeria’s monetary system.
“So the emphasis is on efficient market hypothesis, making sure the market is transparent, making sure that using technology and Bloomberg to have price discovery,” he noted. “What he has done by using technology and all of that is to emphasise market efficiency. After market efficiency comes market sophistication.”
Rewane added that the reforms are not only aimed at stabilising the domestic environment but also at rebuilding global confidence.
“Reforming the institution of the central bank, ensuring that the market is efficient, so price discovery, supply, demand factors, and all of that. Then, now going to build the confidence. Not just within the central bank, not just within Nigeria, but international confidence,” he said.
Warns of Deepening Inequality Amid Economic Strain
Beyond monetary reforms, Rewane expressed concern over the structure of Nigeria’s broader economy, warning that economic growth without equitable distribution will heighten social tensions.
He questioned whether government programmes intended to support vulnerable citizens were achieving their intended impact.
“Is the recycling of the money to the system efficient? One. Two. Even the Marshall Plan to get money across to the vulnerable, is it efficient? Yes, we are using technology. It’s actually delivering the money,” he said.
But he stressed that distribution—not just growth—remains Nigeria’s biggest challenge.
“So, we have to look at how to make sure that impact is felt. If you don’t do that, we are just going to get vulnerable,” he warned.
Using a household analogy, Rewane illustrated how unequal access to resources fuels resentment.
“For example, you have five children in the house, and you’re giving two or three pork chops, bacon, eggs, and you’re giving one or two peppers and all sorts of things,” he said. “Yes, your salary has increased. Yes, you are spending more on food. But the distribution is so inequitable that it breeds resentment and crisis.”
He argued that Nigeria’s policy focus must shift from growth metrics to fairness and inclusivity.
“The problem is not just how to grow the economy, it’s how to distribute it efficiently… When you talk about inclusive growth, it’s not just a cliche. It must happen. You must ensure that income inequality is reduced,” Rewane said.
He warned that ignoring inequitable wealth distribution would only worsen insecurity.
“The symptoms of inequitable distribution are insecurity and violence. So, you can treat the wrong thing and get a different outcome,” he concluded.
