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Sanusi’s Suspension Will Not Affect Nigeria’s Economy – Presidency

The Nigerian president, Goodluck Jonathan, has said that the suspension of the governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, will not have … Continue reading Sanusi’s Suspension Will Not Affect Nigeria’s Economy – Presidency


The Nigerian president, Goodluck Jonathan, has said that the suspension of the governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, will not have negative effect on the nation’s monetary policies.

Addressing a press conference in Abuja on Thursday few hours after the suspension, the spokesman for the president, Dr Reuben Abati, reassured investors that the government was committed to the stability of the economy, the Naira and the country’s monetary policies.

“The monetary policy of Nigeria remains the same and there is stability within the system and so investors within the Nigerian economy have no reason whatsoever to fear. That decision was taken only with regard to internal governance issues within the Central Bank,” Dr Abati said.

Patently Illegal

There have been reactions as to the legality of the decision of the president, citing section 11 sub-section 2f of the CBN Act which states that “removal of the CBN’s governor must be endorsed by two-third majority of the Senate”.

An opposition party, the All Progressives Congress (APC) had described the suspension as “patently illegal, poorly thought-out and in bad state”, noting that it will definitely have negative consequences for the nation’s economy.

The spokesman of the party, Lai Mohammed, said that the action was the clearest indication yet that president Jonathan was willing to silence any whistle-blower, no matter his or her statues.

The spokesman for the Conference of Nigerian Political Parties, Mr Osita Okechukwu, faulted the suspension, saying that “the group is at a loss as to why President Jonathan suspended Sanusi, who of late had been exposing the rot in the polity”.

But Abati disagreed with their assertions, saying that the suspension was not illegal, as it was not removal, but suspension.

“The lady who has taken over in acting capacity has been long within the system and so everyone can remain assured that there will be stability and the institution will remain very strong.

“Under the interpretation Act, the point is that he who hires can also suspend,” Abati said.

Financial Recklessness

He listed some of the reasons for the suspension of the apex bank’s boss to include, the persistent refusal and negligence to comply with the Public Procurement Act in the procurement practices of the CBN and unlawful expenditure by the CBN on intervention projects across the country, deploying huge sums of money without appropriation and outside the CBN’s statutory mandate.

“It is expected that the expenditure of public funds must be based on clear legal mandate, prudent costing and overriding national interest. There are acts of financial recklessness committed by the CBN as reflected in its audited financial statement for 2012,” he said.

Dr Abati also debunked claims that the suspension was in connection with the ongoing appearances at the National Assembly by the suspended CBN governor on issues bordering on Kerosene subsidy and unremitted funds to the Federation Account by the Nigerian National Petroleum Corporation (NNPC).

Mr Sanusi had claimed that the NNPC did not remit $20 billion, a claim that the National Assembly is currently investigating.