The Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi is among the dramatis personae in the stormy life of the nation in the expired year, especially with his controversial review of the nation’s currency, reports Assistant Editor Dada Aladelokun
Whenever the ‘2012 chapter’ of Nigeria’s annals becomes a point of reference in future, one name will incontrovertibly stand out, either for celebration or condemnation. It is that of Mallam Sanusi Lamido Sanusi, a most controversial Governor of the Central Bank of Nigeria (CBN).
In the nation’s dire quest for liberation out of its seeming labyrinth of economic despondency, it hired the experienced banker. It was in 2009. The acclaimed banking czar was brought into the nation’s recovery equation by the late President Musa Yar’Adua who, on his part too, would not leave any stone unturned to convince Nigerians that he had the clue to rescuing the nation from the shackles of economic strangulation. To many a Nigerian who jumped up in euphoria over Sanusi’s appointment, he had in his kitty, the much-sought magic wand to do a good job of rejuvenating the ailing economy.
Since the mantle to head the nation’s apex bank fell on his lean shoulders, Sanusi, through virtually every major action he has taken so far, has earned himself a middle name – Mr. Controversy!
He first took Nigeria by storm with what was known as the ‘Consolidation of Banks’ in the country. His reason: Some of the existing banks then were good ‘patients’ for the Intensive Care Unit (ICU) of a banking infirmary. Yes, in his reckoning, the banks were not straight of legs. And his panacea: Forced wedlock!
The effort generated hues and cries across the land by experts who firmly believed that the merger was misplaced. To them, the existing banks were sound in wind and limb. But Sanusi won the battle and new names like Mainstreet, Enterprise, and Keystone Banks were born.
The nation was still smarting from the consolidation brouhaha when the CBN boss reached out to his “bag of ideas” and came up with another joker. It was named “Cashless Policy.” It was aimed at reducing the volumes of money held in cash for transaction by Nigerians for ease and security.
It did not generate much heat as Nigerians saw sense in Sanusi’s explanations. However, he further stirred the hornet’s nest about the second quarter of the year when he shook the nation with the planned introduction of N5,000 notes.
“Under the new structures, the existing denomination of N50, N100, and N200, N500 and N1,000 will be redesigned with added new security features, the lower notes of N5, N10 and N20 will be converted to coins,” the CBN Governor had said when he announced the introduction of the policy.
Right from the point of its pronouncement by the CBN authorities, an admixture of shock and exasperation ruled the land. In fact, if there is any Nigerian that is yet to speak out against the policy, he must be a member of Sanusi’s family.
The general run of opponents of the policy is of the belief that it runs counter to his much-touted cashless policy. Many believe it would worsen corruption and inflation.
The already heated temperature of the polity over the policy heightened, when last September the Federal Government formally endorsed the plan to introduce the N5,000 naira notes despite the widespread criticisms and protests that greeted it.
The Nigerian Bar Association (NBA) numbered among the implacable opponents of the policy. The body not only criticised the move, it rose from its 52nd Annual General Conference of the Bar in Abuja with a threat of litigation against Sanusi. It came through a communiqué which further asked the CBN governor to submit the plan to the National Assembly to avert any legal war.
Infuriated, the immediate past President of NBA, Joseph Daudu (SAN), contended that the CBN under Sanusi was not a fourth arm of government and that for him to solely embark on such a mission was alien to the nation’s constitution.
“The CBN is not the fourth arm of government, for there is no fourth arm of government. CBN is advised to submit the measure for legislative approval which the national assembly is expected to consider in line with the wishes of majority of Nigerians,” the communiqué said.
While giving thumbs-up to the Senate for its stay order on the ‘scam’, the body warned the CBN against its “reckless plan to negatively alter the face of Nigerian economy,” which it reasoned, would exacerbate the prevalent economic hardship among Nigerians as well as insecurity of lives of bank workers.
The National President of ASSBIFI, a body of senior workers in banking, insurance and financial institutions in the country, Comrade Olusoji Salako, also stood stoutly against the policy, saying that “the association received the proposed restructuring of the naira with great shock.”
The body stated that it was the least thing Nigerians needed then because it would only “inflict more pains and oppression on the common man.”
Salako had asked rhetorically: “The question we are asking as practitioners and as Nigerians is what project or object is the programme out to ‘cure’? Is it inflation, interest rate, improper banking habit, bank robberies, unemployment, corruption, money laundering, poverty, insecurity, and so on?”
Echoing similar sentiments, Comrade Friday Inegbedion, Senior Assistant Secretary General, noted that it was the 10th time the national currency, the naira, would be restructured since its introduction in 1973 to replace the pounds sterling. He was of the regret that the restructuring had only brought about more devaluation to the naira.
“Prior to the pounds, the people of Nigeria were using cowry shells as currency. In all of these, it only signals the devaluation of the nation’s currency and slippery slope towards hyper-inflation. The introduction of higher value currency notes in the economy often signifies a regime of increased and sustained fiscal deficit financing,” he recalled.
Both chambers of the National Assembly lost sleep over the furore. In its height, their members met, deliberated and passed resolutions asking President Goodluck Jonathan to stop the CBN from introducing the controversial notes.
While the Senate unanimously adopted a motion urging the “President to direct the CBN to stop all actions on the issuance of the proposed N5,000 notes and all matters connected therewith,” the House members directed the apex bank to put the plan on hold.
A laughable twist was added to the imbroglio when President of the Senate, David Mark, said he was not briefed about the proposed currency review. “If Nigerians say that they don’t want anything, I think they deserve to be listened to. I have listened to the arguments of those supporting it. Their arguments are not convincing. They are theoretical and do not address the problems in practical terms. The disadvantages of introducing the N5,000 far outweigh that of not introducing it. There is no urgent need for us to take this now,” Mark had said.
Senator Ita Enang (Akwa Ibom North) spear-headed the resolution with a motion asking Sanusi to halt action on the proposed currency.
Leading the debate on the motion, Enang said the Senate was aware of section 18 of the CBN Act, 2007, which conferred on the bank the power to arrange for the printing of currency notes and minting of coins, among others. The Senate, he also admitted, was also aware of Section 19 of the Act which gives the bank the licence to issue denominations and fractions with the approval of the President on the recommendation of the board.
Deputy Leader of the Senate, Abdul Ningi, echoed his position, describing the policy as unacceptable to Nigerians and ruled out the need for a public hearing since Nigerians had spoken their minds on the matter very clearly.
Chairman of the Senate Committee on Banking, Insurance and other Financial Institutions, Senator Bassey Out, was not left out of the debate. He explained that in embarking on a major currency review, the CBN ought to have consulted with the National Assembly. Explaining that the new policy was suggestive of a serious problem in the nation’s currency stability, he added: “The woeful failure of coinage in 2005 should be a lesson.”
The Minority Leader of the House, Mr. Femi Gbajabiamila, also lent his voice to the debate. He observed that “a body unknown to law, the Economic Management Team,” had approved the controversial N5,000 note.
Perhaps convinced by the arguments against the “anti-people policy, President Jonathan “divorced” Sanusi on the issue as he formally ordered him to put the planned introduction of N5,000 note in abeyance.
He spoke through his Special Adviser on Media, Dr. Reuben Abati. Abati told the nation that the President’s latest resolve was based on the need for more “enlightenment and consultation.”
