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Nairaland Forum / Nairaland / General / Politics / Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief (856 Views)
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Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by shaddoww: 8:42pm On Aug 02, 2015 |
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. 1 Like |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by eluquenson(m): 8:46pm On Aug 02, 2015 |
That's the simple truth for those who has understandings |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by Bashirfuntua(m): 9:58pm On Aug 02, 2015 |
Add source and you'll be on frontpage |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by Nobody: 10:09pm On Aug 02, 2015 |
Toh, make Baba BuBu call am back now |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by Sunofgod(m): 10:10pm On Aug 02, 2015 |
Just like the cancellation of 'Miami Vice' is affecting Miami . . . . [img]http://media4./media/AVun92P6O8q2Y/200w.gif[/img] |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by sammyj: 10:33pm On Aug 02, 2015 |
Blame the past clueless government for this act! ! ![]() |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by david22uu(m): 10:37pm On Aug 02, 2015 |
NA SO SO BLAME THIS BUHARI GOVERNMENT DEY DO ABEG WORK MAKE WE SEE... |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by sandraokosun: 12:11am On Aug 03, 2015 |
no thanks to the clueless one |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by sokunji(m): 12:16am On Aug 03, 2015 |
source pls.. he should stop crying over spilled milk. ..cbn governor's are changed constantly. ..so why politicize SLS' removal. |
Re: Sanusi’s Sack As CBN Governor Still Affecting Nigeria’s Economy, Ex- Bank Chief by Segadem(m): 12:22am On Aug 03, 2015 |
ok |
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