A former official of the Central Bank of Nigeria has stated that the Nigerian economy is still suffering from the effects of the controversial removal of Sanusi Lamido as the bank’s governor. Charles Mordi, a former director of the Central Bank, CBN, also said absolute respect for the autonomy and independence of the bank is crucial to Nigeria’s efforts to achieve stability in the exchange rate of the Naira. Mr. Mordi, who was in charge of the Research Department of the Central Bank, CBN, said in Calabar, Cross River State, on Thursday that undue political interference in the bank’s exercise of its authority was capable of negatively impacting investors’ interest in the country’s economy. The ex-bank chief was of the view that the more global investors saw the CBN as capable of exercising its powers without political interference, the more their confidence in the country’s monetary policy would be kindled towards increased investment in the economy. Citing examples in other economies where the autonomy of their Central Banks helped in achieving efficiency in the management of their foreign exchange markets, Mr. Mordi said there was the increasing need for government to emulate the global best practice by ensuring that the autonomy and independence of the CBN was respected at all times. In his review of the current challenges the country was facing in achieving a stable exchange rate for the national currency, the former CBN director traced its roots to the controversial suspension from office and subsequent sack of Mr. Sanusi by ex-President Goodluck Jonathan in February 2014. Mr. Sanusi, currently the Emir of Kano, was suspended from office on the orders of the President following his allegation that $20 billion was missing as a result of unreconciled oil revenues he said were not transferred to the Federation Account by the Nigerian National Petroleum Corporation, NNPC. The money, the former CBN governor said, was from crude oil exports by the national oil company between 2011 and 2012 that was not remitted to the government account. Mr. Mordi said the decision by the President sowed the seed of the current crisis in the banking sector, which has lingered till date, with investors’ confidence in the economy eroded, as a result of uncertainty in the country’s monetary policy direction. “For instance, you would recall that immediately after the action, the Capital market reacted negatively, as investors’ confidence in the system registered a significant drop. “As the CBN was struggling to battle with the impact of the action, the Naira value crashed, followed by the significant drop in crude oil prices in July,” Mr. Mordi said. He also said the CBN governor’s removal coincided with Nigeria playing host to the African Central Bank Governors’ Conference, which witnessed one of the poorest attendances of any event of that magnitude in recent times. He said since the fallout of that crisis, the country has not really recovered, as some of the factors have continued to negatively impact the foreign exchange market, especially the stability of the Naira exchange rate. “Therefore, the autonomy and independence of the CBN has serious implications for the national currency exchange rate, as investors would only come in to do business in the country if they are sure of the country’s monetary policy direction. When they invest, exports will improve, foreign earnings will increase from export trade. “The autonomy of the CBN should be cherished and sustained. Any CBN Governor worth his salt should defend the autonomy of the Bank. “If a President wakes up and says he does not like the face of the Governor of the CBN, such a utterances will negatively impact on the foreign exchange market, the Naira exchange rate and the overall health of the economy,” Mr. Mordi said. Urging the government to always allow the CBN to exercise its mandate as enshrined in the Constitution, the financial expert said doing otherwise would only make difficult the effort to achieve Naira exchange stability, efficient FOREX market management and macroeconomic stability. He commended the CBN for its continued pursuit and implementation of its statutory roles of promoting fiscal and monetary policies towards financial system stability. However, he lamented the negative impact of undue political interference in the Bank’s operations, saying the February 2014 experience had continued to raise a lot of questions about the country’s monetary policy direction.

That's the simple truth for those who has understandings

Add source and you'll be on frontpage

Toh, make Baba BuBu call am back now

Just like the cancellation of 'Miami Vice' is affecting Miami . . . .

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Blame the past clueless government for this act! !

NA SO SO BLAME THIS BUHARI GOVERNMENT DEY DO

ABEG WORK MAKE WE SEE...

no thanks to the clueless one

source pls..


he should stop crying over spilled milk. ..cbn governor's are changed constantly. ..so why politicize SLS' removal.

ok