FG Being Political By Claiming Sanusi’s Suspension Won’t Affect Economy – Analyst

An Economist, Dr Abiodun Adedipe, on Saturday said that the controversial suspension of the CBN governor, Lamido Sanusi, is “a very critical issue for our economy” stressing that the manner in which the act was carried out will affect the economy and that the Federal Government’ s claim that it wouldn’t is merely a ‘political statement.’

Speaking on Sunrise (Saturday), Dr Adedipe said “Immediately that pronouncement was made, the exchange rate market began to react. Also the stock market started to react,” maintaining that macroeconomic indices began to move in adverse directions.

According to him “the major issue is new capital formation “which is simply new investment.” He added that “any investor, whether domestic or foreign, will naturally look at the development and say it is not the time for me to put in fresh money.”

“Ultimately, if we get back on track, that little space of time where we lost momentum willensure that the prospect for growth that the economy had at the beginning of the year will certainly fall short by the end of the year.”

He stressed that the position of the CBN Governor is very key to the financial industry and the national economy hence comments made by the person in the position are important and are key indicators of the direction of policy and response of the system to developments in the economic space.

“Whatever actions are taken or utterance made by such a person is a reflection of the data and information available to him.

The way the government deals with whoever is in that position becomes important and that is why in my opinion, the government has not handled it in a way that will help this economy.”

While speaking on the programme, Social Commentator, Biodun Sowunmi, said that, that the suspended CBN governor erred “may not necessarily be in doubt”

“The fact of the matter is that there are so many allegations made against Sanusi. Whether they are right or not, we don’t know because it has not been investigated.

However, “where people have problems now is not whether there are no issues, indictments against Sanusi. They are mere allegations which have not been investigated. The real issue is whether the president has the powers under the law to suspend Sanusi.”

He stressed that the president has a right to appoint, nominate while the Senate confirms. “That means the President is sharing that authority with Senate and when it comes to the issue of removal, it’s only under section 1F that made an explicit provision that you can only remove the governor of Central Bank if for instance the President recommends the removal and is backed by two-thirds of the Senate.”

He continued by saying “interestingly, there’s only one aspect of section 11 that made reference to removal. The section relating to that is section 11(1)(D), you can only be suspended from office if the professional body that he belongs to finds him guilty of one thing or the other.

“There’s no provision for suspension, there’s only provision for removal and you can only suspend somebody if he has been found guilty by his professional body. That is not the case.”

He attributed the suspension to the president’s desire to accelerate his transformation agenda.

Analysts List Faults In Sanusi’s 5 Year Tenure As CBN Governor

Legal practitioners, Liborous Oshomah and Kenneth Odidika on Saturday listed what they found wrong in Lamido Sanusi’s five year reign as Governor of the Central Bank of Nigeria, while speaking on Channels Television’s Saturday breakfast programme, Sunrise.

Oshomah, who was of the opinion that the government fell out of favour with Sanusi, argued that the suspended governor’s tenure was characterised by crisis and inconsistencies.

While praising the former CBN Governor, Charles Soludo, for managing challenges without raising alarms, Oshomah stressed that many of the decisions taken by Sanusi, while in office, were controversial.

He also mentioned the issue of the banking crisis which resulted in several banks folding up and thousands of workers being laid off, stressing that banks are still unable to recover from it.

While commenting on the controversies exposed by Sanusi including the 25% allocation of the national budget to the National Assembly, and the NNPC missing money, Oshomah said the suspended governor waited until the near end of his tenure to hit the government he is a part and parcel of.

“If you want to be a critic of the government, it is better to be out of that government,” he said.

On the inconsistency which trailed the figures released by the CBN as NNPC missing money, Oshomah asked why it took Sanusi so long to raise the alarm and faulted inconsistencies in the figures disclosed, adding that, calculations should have been done privately before going public.

“I think all of this should have been done underground so when you come out with your figures, people would solidly believe you, stand behind you and say that look this man knows what he’s talking about. But the way he went about it showed that all of a sudden the amount went from 49 to 10 billion.

10 billion is much, I agree, but for somebody at that level, I think once you speak we ought to believe.”

Speaking on the powers vested on the CBN governor, Oshomah said the apex bank is not a sovereign on its own and faulted Sanusi for acting as if the CBN was a country on its own and he the president.

On his part, Kenneth Odidika described Sanusi as a “very brilliant man who seemed not to appreciate the enormity of the responsibilities of the office he occupied.”

Odidika went ahead to label the suspended governor a ‘talkative’ whose good diction and spoken English and “musical voice” is mere theatrics ‘from Hollywood.’

“For a central bank governor to be in every forum, talking both about the economy and all things that are not related about the economy, that was unbecoming of Sanusi, as Central Bank Governor. I could go as far as saying that Sanusi was irresponsible in discharging or not discharging his responsibilities as central bank governor.”

Sanusi Suspension: Naira Records Worst 24 Hour Dip In 15 Years – Awoyemi

Femi Awoyemi

The CEO of Proshare Nigeria, Femi Awoyemi, on Friday disclosed that the Naira experienced its worst 24 hour dip in the past 15 years as a result of the sudden suspension of the Central Bank Governor, Lamido Sanusi, by the President of the nation, Goodluck Jonathan.

“The Naira has fallen far lower than it has in 15 years, in one single day. That’s to tell you that this action has huge consequences,” he said.

Speaking on Sunrise Daily, Awoyemi linked the suspension, which he says “defies deep reasoning,”  to the on-going investigation into the NNPC’s activities, which started as a result of Sanusi’s whistle blowing.

“If it is the case of the timing, this is a poorly timed decision,” he said.

Also, Awoyemi stressed that “the focus on the person as against the institution was also rather very damaging.” “The CBN Governors’ role is far beyond what the individual, Lamido Sanusi is, so we must separate the two.”

He argued that “Lamido Sanusi, at the risk of contradiction, tends towards being a propagandist in terms of his vision as a solutions provider who chooses to want to take a definite stand in terms of how the role of Central Bank in the economy is ordered.”

Although some analysts have said that the suspension was expected as the CBN governor was supposedly working against the Goodluck Jonathan administration but Awoyemi opined that; “If the CBN governor was going to step down in March but the government needed to teach him a lesson, I think this is a very expensive lesson.”

On Sanusi’s intentions to challenge the Federal Government in court, Awoyemi said: “I think it would be a welcome development to see how that will go.”

“If the Central Bank governor is found to have done something wrong or has been discovered to do something wrong, what does the government do?”

He further described the suspension as shocking. “I cannot recall anywhere between section 5 and section 11 that gives a provision for suspension. I’m sure they would have acted under legal advice and the legal advice would have created some basis for their action hopefully.”

Mr Awoyemi said that the dip was a visible reaction of the international community to the suspension.

 

He further said: “The Federal Government thinks it will go away in a week or two but I can assure you it’s in the record books right now.”

He however cautioned that “this is not to say that those who are challenging this decision condone a situation where the Central Bank Governor would act with impunity. No, that is not the case.”

According to him, the Federal Government could have prevented the market crisis by following due process. “They can present the case to the Senate and say on the basis of the following allegations which have been substantiated by apparatus of government, that this gentleman needs therefore be removed.”

“We should be looking at how to deal with such situations and this whole process can help us in developing that.”