He is diminutive, dapper, arrogant, proud but intelligent, charming and loves black suit with bow tie. That is Mallam Sanusi Lamido Sanusi Ibn Abdullah Bayero – to give him his full honorific title He was until Thursday last week, the Governor of the Central Bank of Nigeria, CBN.
His removal was contained in a statement by presidential spokesman, Dr. Reuben Abati. Sanusi was accused of alleged breaches of enabling laws, due process and mandate of the Central Bank.
Top among what is termed Sanusi’s sins are: “persistent refusal and/or negligence to comply with the Public procurement act in the procurement process of the central bank of Nigeria, unlawful expenditure by the CBN on “intervention projects” across the country, financial infractions and acts of financial recklessness committed by the CBN as reflected in its Audited financial statements for 2012, which are inconsistent with the administration’s vision of a central bank propelled by the core values of focused economic management, prudence, transparency and financial discipline”
Sanusi was directed to hand over to Mrs. Sarah Alade as Acting CBN Governor pending the Senate confirmation of Mr. Godwin Emefiele as new CBN Governor. Emefiele is presently MD of Zenith Bank Plc.
After closer analysis of the circumstances that led to Sanusi’s sack (forget the word ‘suspension’), I came to two conclusions. One is that Sanusi brought the fire that engulfed him and when he saw it coming he dared the authorities to remove him. Sanusi thought the President was the Emir of Kano. He read the CBN Act upside down. This is where I agree with learned lawyer Femi Falana, SAN. Convinced that he could only be removed by the President with the approval of the Senate, Sanusi went about boosting of his infallibility and do I say, invincibility. His behavior reminds me of the proverbial grasshopper that was rejoicing while inside fire without knowing that his death was at hand.
Based on obvious irreconcilable differences between him and the federal government on the operation and management of the Federation Account, the ex-CBN governor ought to have voluntarily resigned his appointment. Rather, he decided to remain in office while taking the Administration to the cleaners. He forget that as an employee of government, he cannot rub shoulders with the President whether Jonathan was the person that employed him or not.
The second point I want to make is that given the gravity of the offences alleged committed by the ousted CBN helmsman, he could not have acted alone all through the process. The Deputy Governors, the Board of Directors and the Directors are guilty of the breaches. Knowing full well how the CBN bureaucracy operates, somebody must originate a memo on an item of expenditure. Thereafter, the memo would pass through a chain before getting to Sanusi for approval. Even after approval, it will still go through another process until payment is made. How come in all the ‘sins’ committed by Sanusi, none of the Deputy Governors or Directors blew the whistle? The fact that the gatekeepers failed in their responsibility of protecting precious government resources entrusted into their care by collaborating with Sanusi in the illicit transactions calls to question their continued stay in the apex bank. The FRCN report indicted both Sanusi and Deputy Governors. Sanusi is the King in CBN, his Deputies and Directors are the Horsemen. As it is commonly said, when a tree falls it falls together with its branches and leaves. CBN needs total cleansing and sanitation to move forward. I am of the opinion that a forensic audit of the CBN transactions during Sanusi era be carried out to determine the level of culpability of both Sanusi, Deputy Governors, Directors and other officers of the apex bank and those found guilty should be shown the way out and prosecuted. There should be neither scape goats nor sacred cows.
Born 31 July 1961 in Kano, Sanusi was appointed Governor of the Central Bank of Nigeria on 3 June 2009. He was a career banker and ranking Kano emirate nobleman, and respected Islamic scholar. Sanusi’s tenure as CBN Governor was greeted with much controversies and criticisms. He not only made outstanding achievements in the banking sector reform but courted troubles for himself and his institution. His appointed was made at the height of the financial crisis in Nigeria Sanusi is better known as an ‘unconventional governor” – a fact that he readily admits. “As an unconventional governor, I am obliged to step out and ensure a policy that builds on the comparative advantages that Nigeria enjoys,” he once said.
One example of his non-conventionality was his failed attempt to introduce N5000 note and turn some existing naira denominations to coins. Other policy reforms Sanusi introduced included the removal and eventual prosecution of several bank chief executives found to have abused their office; introduction of a legislation restricting the maximum tenure of any bank’s chief executive; pushing the banks to adopt international best practices and standards, embrace the Basel III Accord and enhance technical competence in the banking system. He also set up the Assets Management Corporation of Nigeria to absorb poor assets by purchasing debt from 21 of Nigeria’s 24 banks and issuing $6.8bn in ‘consideration’ bonds to buy non-performing loans from the institutions. He also introduced the cashless policy which aims to reduce the amount of cash in circulation, slow inflation rate, stable exchange rate, well governed banking system, robust reserves, independent Central Bank and financial inclusion.
By far the most endearing quality Sanusi possesses is his grasp of the economy and the extent of the rot that has permeated every sector of the Nigerian state. He was not afraid to speak his mind and in each case stirred more controversy. Indeed, he could be best described as Mr. Controversy. Few weeks after his appointment by late President Umaru Yara’Adua he advised the then president to cut down his 7-point Agenda to 3. He also sacked within 4 months, three chief executives of banks and arraigned them in court.
Sanusi incurred the wrath of the National Assembly, when at 7th convocation lecture of the Igbinedion University, Okada, Edo State; he said that 25 per cent of the country’s overheads were being spent on the federal legislators. “If you look at the budget, the bulk of government’s revenue expenditure is on overheads”. Before the dust raised by that statement could go down, he sent out another bombshell when he called for the retrenchment of 50% of the civil servants. Labour’s response was predictable; it called for Sanusi’s head on a platter of silver. Many people, including students, were quick to condemn Sanusi in very strong terms only few sought to know what his reasoning was. Sanusi on his part has vowed to challenge his suspension in court.