Sanusi Lamido Sanusi: The Deceits of a Central Bank Governor

Sanusi Lamido Sanusi, Nigeria's CBN Governor

In the year 2006, the Business Day edition averred that “for every five Nigerians with a good job, three are bankers”. Five years along the line, same cannot be said of the Nigerian banking industry and the economy as a whole.

Also, prior to the 2008 global economic meltdown, Charles Soludo, the then CBN governor, initiated various programmes aimed at stabilising the Nigerian banking sector. He initiated the recapitalisation exercise to make the banks have stronger capital base, designed the Expanded Discount Window to enable banking institutions have uninterrupted access to cash and he also strengthened the CBN’s regulatory framework to ensure that banks play according to the rule of the games. The result was that the Nigerian banking industry experienced unprecedented boom and declared overwhelming profits. Employment in the banking sector was second to none and every young Nigerian graduate desired to work in the banks, including my humble self. The banks were strong, relatively efficient and contributed greatly to the growth of the macro-economy. That was the approach of a visionary governor, one who understood the dynamics of the global, regional and national economy and one who is not in want of ideas on how to accelerate the economy and restore confidence. Without confidence, the banking business is as good as dead.

Fast-forward to 2009 when yours sincerely was still rumbled with the burden of the national youth service, came Sanusi Lamido Sanusi. A man with questionable professional acceleration, and doubtful academic pedigree required of central bank governors. Sanusi, no doubt, is an intelligent man but his knowledge (in my opinion) is limited to issues of the society and religion. But based on the circumstances of his birth, ethnicity, and probably political and social loyalty, he was made the CBN governor. Since then, Nigerians and the Nigerian economy have not been the same. He initiated a banking cleansing exercise. He told Nigerians that their banks were dead and the bank chiefs were corrupt and needed to be dealt with. Nigerians, in their usual docile mannerism, listened and accepted his position. Sanusi printed 600billion tax payers’ money without legislative approval and handed over to the same institution he declared dead ab-initio on a bid to ”save” them. What happened afterwards remains a mystery which only Sanusi can discern.

Five years along the line, we cannot say if the Nigerian banking sector, the economy and even CBN itself is either dead, sleeping or epileptic. Unemployment is on its highest level, inflation is in double digit, the real sector of the economy has collapsed and the Nigerian people have suffocated. Going by Sanusi’s thinking, the current insecurity in the country and the Boko Haram activity could be linked to the CBN’s insensitive, callous and unprofessional handling of the economy.

One good thing with macro-economic policies is their tendency to stabilise/readjust after sometimes. A typical business cycle last not more than five years. An example is the US economy, an economy greatly hit by the 2008 meltdown. Four years along the line the US economy is back on its feet; jobs are back, banks are relatively strong and the people are happy. The question then is, where has the Sanusi’s policies led us? Just few days ago, Access Bank announced the sack of about 1500 former intercontinental bank staffs. This is coming to a time when the unemployment rate is over 30% and the economy is in disarray.

For clarity purpose, I do not have anything personal against Sanusi. I am only worried at the manner in which he handles the affairs of our country and operates an ”I don’t care” policy. Why would Sanusi care when none of his family members will ever look or lose their jobs? How will he care when the CBN has turned to northern political instrument and why will Sanusi care when Nigerians are reluctant to question his approach as a governor?

During the fuel subsidy removal brouhaha and the anarchy that followed, Lamido Sanusi, a one-time messiah of the people was visibly busy leading the campaign. Sanusi made various unapologetic attempts at deceiving the Nigerian people. Firstly, Sanusi made reference as to why there is no smuggling in the Middle Eastern countries and gave reasons why petroleum products are sold at relatively low price in those countries. He said the Middle Eastern states are bordered by other neighbouring oil producing states with relatively cheaper oil products thereby making smuggling of fuel unattractive but failed to give instances of countries such as Venezuela, a country in South America which borders Colombia to the west, Guyana to the east, and Brazil to the south and yet sells its fuel at relatively cheaper price per capita compared to Nigeria.

He also failed to make reference to Norway which shares border to the east with Sweden; its northernmost region is bordered by Finland to the south. These countries, despite not bordered by oil producing states sell fuel at relatively cheaper price per capita.

When a lie is repeated often without being checked, it begins to look like the truth. The lies of Sanusi is gradually gathering moss and the earlier we realise this, the better for us as a people. According to Albert Einstein, the world will not be destroyed by those who do evil but by those who watch them without doing anything.

Written by Chamberline Chinaka on Feb 4 2012 Filed under Featured, Perspectives. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.