The Nation Newspaper

Tag: CBN Governor

  • NASS requests for detailed report on bailout from CBN

    NASS requests for detailed report on bailout from CBN

    The National Assembly has demanded for the detailed hard copy report of the federal government bailout to states from the Central Bank of Nigeria (CBN).

    Addressing journalists at the end of a “routine friendly oversight visit to the CBN” the Chairman, Senate Committee on Banking and Other Financial Institutions, Senator, Rafiu Adebayo Ibrahim, disclosed that members of the committee were happy with the presentation of the apex bank on all issues raised but giving the importance of the bailout to state governments, the senate, he said, needed further clarification which required that the CBN forward the hard copy of the report to the committee for further perusal.

    According to Senator Rafiu Ibrahim, “we requested for a detailed hard copy of a report of the bailout and loans, we are satisfied with their (CBN) presentation, they have told us what they have done so far.”

    The senator also stated that members of the committee did not see any major problem between fiscal and monetary authorities. The alleged differences between both policy authorities the senator said “is only a matter of perception, they are working together in the interest of the country.”

    He assured that “the role of the National Assembly is to help the CBN perform its duties very well.”

    On his part, the CBN governor, Mr. Godwin Emefiele, assured the members of the senate committee on banking and other financial institutions that the current economic challenges are easily surmountable.

    Emefiele appealed to the senators “to work together with the apex bank to make Nigeria a habitable place for all.”

  • Recession: Northern youths want CBN Governor sacked within 21 days

    Recession: Northern youths want CBN Governor sacked within 21 days

    Group under the auspices of Northern Youth Council of Nigeria (NYCN) has called for voluntary resignation of Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele within the next 21 days or do something to put the nation’s economy on the right track.

    They said though they were not economists but they are aware that economy of the country is in shambles with foreign exchange rate worst in recent times, calling on President Mohammadu Buhari to look for people with technical know-how to join him to fix the economy before it gets out of hand completely.

    President, NYCN, Comrade Isah Abubakar in a statement on Wednesday noted that lack of economy and financial direction have increased poverty rate in recent times from 60 per cent to 75 per cent with attendant consequences that have increased number of impoverished Nigerians to about 120 million.

    The statement read in part: “after watching with keen interest the present economic hardship in the country, we are saying no thanks to CBN Governor who has not been able to come up with any plan that can take us out of the wood as head of our financial body, we at NYCN while supporting the administration of President Mohammadu Buhari are saying we are not happy with his economy team hence the need to look inward for better hands.

    “We now pay as high as about N500 to a dollar. This has brought serious hunger and hardship on our people because most of what we eat are imported and are been affected by high foreign exchange. Inflation has increased from 7 percent in 2013 to 17 percent in quota 4 of 2015 and quota 3 of 2016 which bothers the CBN Governor and Finance Minister, Funke Adeosun agreed to the fact that economy is in trouble.

    “Unemployment is another problem as it has soared to 24 percent at a period when millions of beverages, tobacco, banks and hospitality sector workers have been added to already saturated Labour market. Small and medium scale enterprises that were coming up are folding up as they can not bear the exchange rate that has sky rocketed beyond their reach.

    “This has show total failure of the CBN governor and he has proved his total incompetence to manage Nigeria economy. It is to this regard we demand for his resignation as the CBN governor and urged Mr President to appoint a competent hand not minding where he comes from, his ethnicity, or religion background. We only need someone with sound economics nitty-gritty who can manage our delicate economy. This is because we demand nothing but a better Nigeria.

    “Failure of the CBN governor to voluntarily resign or put the economy in the right track within the 21-day of this ultimatum, NYCN will be forced to organize and mobilize mass protests in front of the CBN headquarters in Abuja”, the statement added.

    The statement however called on All Progressives Congress (APC) led government at various levels to stop playing blame games and work for people that elected them into varying offices they are occupying, noting that they were voted in to effect positive change the country needed and not to keep complaining.

    “We know we are not broke. It’s just that only few cabal and multi national companies are holding it. The time to work is now”.

  • Bank restates commitment to MSME growth

    Bank restates commitment to MSME growth

    The banking industry has restated its commitment to growth of the Micro, Small and Medium-Scale Enterprises (MSME) in the country.

    The Managing Director of Fidelity Bank Plc, Nnamdi Okonkwo, said the bank had raised N30billion in corporate bonds on the Nigerian Stock Exchange (NSE).

    Okonkwo said that the capital raising exercise was expected to enable the bank fulfil its promise to increase MSME lending to 50 per cent by 2017.

    He added that the bank had earmarked 80 per cent of the net proceeds of the bond to finance MSMEs which have been peddled as the next cash cow.

    In a similar development, Heritage Bank Ltd said on Wednesday that it had boosted its entrepreneurship support by the launch of N500 million Young Entrepreneurs and Students (YES) Grant.

    Its Managing Director, Mr Ifie Sekibo, said in Lagos that the initiative was a partnership with the Nigerian Youth Professional Forum (NYPF), to support students and young entrepreneurs toward socio-economic freedom.

    Sekibo said the Heritage Bank’s support for the programme arose from the fact that the initiative aligns with the vision of the bank, which is to help create, preserve and transfer wealth across generations.

    He added that the bank would also support the project in terms of training the beneficiaries, disbursement of the grant, monitoring and evaluation of the project’s milestones agreed with the beneficiaries.

    Also same day, the National Assembly finally passed the 2016 budget submitted by President Muhammadu Buhari.

    The 2016 budget of N6.06 trillion was reduced by N17 billion, to make it lower than the N6.07 trillion estimates presented by the President in December.

    The banking industry during the week also witnessed a policy decision that made the Central Bank of Nigeria (CBN) to raise the Monetary Policy Rate (MPR), an anchor rate for commercial banks.

    The CBN, through the Monetary Policy Committee (MPC) raised the MPR, the reference interest rate by 100 basis points from 11per cent to 12 per cent.

    It also raised the Cash Reserve Ratio (CRR) by 250 basis points from 20 to 22.5per cent, while retaining the Liquidity Ratio (LR) at 30 per cent.

    The CBN Governor, Godwin Emefiele, said the Committee, “in its assessment of relevant internal and external indices, came to the conclusion that the balance of risks is tilted against price stability.

    The MPC, therefore, voted to tighten the stance of monetary policy.

     

  • Senate, CBN Governor in closed-door meeting

    Senate, CBN Governor in closed-door meeting

    The Senate on Tuesday gave a scanty narrative of its discussions with the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, at a closed door session.

    This was a clear departure from the open fora created by previous sessions of the Senate for past CBN Governors to answer critical questions on the economy and monetary issues.

    According to the Chairman, Senate Committee on Information, Aliyu Sabi Abdullahi, the CBN Governor presented a detailed, comprehensive and lucid account of the performance of the economy in the last one year.

    Abdullahi said, “His (Emefiele) presentation began with the current global economic conditions, which have been characterised by external shocks, including the sharp decline in commodity prices, the geographical tensions along important global trading routes and tightening of monetary policy in the United States.

    “He drew linkages of these occurrences with the Nigerian economy, especially with respect to the over 70 percent decline in oil prices from about $116 per barrel in June 2014 to about $30 per barrel currently.

    “The Governor’s presentation also gave us an insight into the bank’s analysis and understanding of the situation, and therefore, the rationale underlying the countervailing policy actions it has taken over the last couple of months.”

    The narrative further stated that going by Emefiele’s analysis, the country was not doing badly in many macroeconomic indices when compared to its peers.

    Senator Abdullahi also said the senators raised questions bordering on the health of the banking system, stoppage of sale of foreign exchange to Bureau De Change operators and rise in inflation.

    They were also said to have discussed the fall in foreign exchange reserves, exclusion of some items from access to foreign exchange, and policy coordination between fiscal and monetary authorities.

    He continued:”Following an exhaustive response by the Governor and his team, the Senate acknowledged that these are indeed difficult times all over the world and not just in Nigeria.

    “The Senate also acknowledged the pains that many people may be facing at this time, especially in light of shortages of foreign exchange for legitimate business.

    “But having carefully considered the policies of the CBN, the Senate would like to commend and support these policies because they are mostly geared towards increasing local production, creating jobs, safeguarding our commonwealth and expanding economic opportunities and growth in Nigeria.”

  • CBN governor asks banks to reduce risks of terrorist financing

    CBN governor asks banks to reduce risks of terrorist financing

    •Apex bank explains how Boko Haram festered

    Central Bank of Nigeria’s (CBN) Governor Mr. Godwin Emefiele has asked banks and other financial institutions to mitigate the risks of money laundering and terrorist financing.

    He said a risk-based approach was necessary because the resources required to combat money laundering and financing of terrorist were enormous.

    Emefiele gave the advice in Abuja in an address at the opening of a regional workshop on money laundering and terrorist financing risk assessment for financial institutions, which was organised by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).

    The CBN Governor was represented by his deputy in charge of Financial System Stability Mr. Okechukwu Joseph Nnanna.

    He said: “The choice of Nigeria for the workshop underpins the concerns that the security challenges bedeviling the country in recent years have generated.

    “Nigeria, being a financial hub in the region, has a number of financial institutions with branches and subsidiaries spread across the West African region, hence the need to continuously develop the requisite capacity in anti-money laundering and combating the financing of terrorist. The workshop, will no doubt serve that objective.

    “Money laundering and terrorist financing are twin menace, which all territories should continuously focus on to avert their debilitating effects on an economy.

    “For example, the Boko Haram terrorist group operating in Nigeria and some neighbouring countries started as a small radical sect and festered due to ease financing.

    “A docile environment invariably disposes its financial system to money laundering/financing of terrorism activities.

    “Products and services offered by financial institutions provide a veritable avenue for criminals to launder their funds and for terrorist financiers to move funds across various jurisdictions.

    “Consequently, financial institutions are required to adopt policies and procedures that will mitigate the risks of money laundering and terrorist financing. The absence of these policies and procedures exposes financial institutions to reputational damages and regulatory sanctions.”

    Emefiele explained why it was necessary to take pre-emptive steps against money laundering and terrorist financing.

    He said: “Unfortunately, the resources required to combat money laundering and financing of terrorist are enormous, thus, the need for a risk-based approach.

    “Recommendation 1 (R1) of the Financial Action Task Force (on Money Laundering) FATF Standards requires countries and financial institutions to identify, assess and understand their money laundering and terrorist financing risks and apply a risk-based approach (RBA) to ensure that measures to prevent or mitigate the identified money laundering and terrorist financing are commensurate with risks identified.

    “At the Central Bank of Nigeria, we recognise the importance of safeguarding the integrity and stability of the Nigerian financial system as part of our mandate of promoting a sound financial system in Nigeria.”

     

     

    Emefiele added: “The efforts at combating money laundering and terrorist financing is no doubt, a collective responsibility of the regulators, regulated entities, law enforcement agencies and other relevant stakeholders in the financial system.

    “Financial institutions must, therefore, identify, assess and understand ML/TF risks inherent in the nature of their customers, products and services; delivery channels and geographical locations and implement internal policies and procedures to mitigate the identified risks. The roles of GIABA and FATF in enforcing and strengthening these requirements are noteworthy.”

    The Director of the Nigerian Financial Intelligence Unit (NFIU), Mr. Francis Usani, said financial institutions should be mindful of the adverse consequences of money laundering and terrorist financing in the stability and integrity of our financial system.

    He said: “Financial Institutions (FI), by virtue of the service they provide, are seen as a veritable vessel for money laundering and terrorist financing.

    “Money launderers and terrorist financiers are more apt to leverage on the products of the FI to perpetrate their criminal acts.

    “It becomes imminent therefore to identify, assess and mitigate the risk within the financial sector and put stop gaps that will deprive and discourage criminal and restrain the opportunity of using this sector to advance their course.”

    The Director-General of GIABA, Mr. Adama Coulibaly, said the workshop was aimed at strengthening the capacity of financial institutions to undertake robust ML/TF risk assessment in line with the revised FATF standards.

     

  • Appoint deputy governor as CBN governor, says Sanusi

    Appoint deputy governor as CBN governor, says Sanusi

    Former Central Bank of Nigeria (CBN) Governor, Chief Joseph Sanusi has urged the Federal Government to appoint one of the deputy governors of the bank as governor at the expiration of the tenure of the substantive governor.

    He spoke during the Financial Institutions Training Centre (FITC’s) second celebration of leadership excellence dinner  at  Orietal Hotel, Lagos. The institution celebrated two former CBN deputy governors, Mr Victor Odozie and Prof Kingsley Moghalu.

    Sanusi said only an experienced deputy governor who knows much about the tradition of the apex bank could carry its tradition to the next level.

    He urged the government to give the deputy governors of the bank priority in choosing any candidate to succeed governors of the bank.

    He said: “One thing about the CBN is the quality of people the bank always has as workers; they are not just any how persons but quality people who are used to the task. We are unhappy that the CBN  has not deemed it fit to allow experienced and qualified deputy governors to be appointed governor.

    “A situation where we make commercial bankers to head the deputy governors, is a thing to be looked into.

    “I believe the best thing is to bring people from outside at the level of deputy governor so that by the time they become governor, they would have imbibed the tradition of the Central Bank and I hope the government will appreciate the need for experienced hands for the post of the CBN governor.”

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Nigeria’s economy may slip into recession, CBN warns

    Nigeria’s economy may slip into recession, CBN warns

    From the Central Bank of Nigeria (CBN) yesterday came a warning shot on the economy: Nigeria risks sliding into recession next year.

    The apex bank also hinted that the implementation of the Treasury Single Account (TSA) might affect the country’s economic growth.

    Speaking yesterday at the end of the Monetary Policy Committee (MPC) meeting in Abuja , CBN Governor Godwin Emefiele lamented that with “two consecutive quarters of slow growth, the economy could slip into recession in 2016 if proactive steps are not taken to revive growth in key sectors of the economy.”

    Emefiele added: “The overall economic environment remains fragile. The economy further slowed in the second quarter of the year, making it the second consecutive quarterly less-than-expected performance.”

    In the face of the prevailing circumstances, the MPC advocated that a “synergy between monetary and fiscal policies remains the most potent option to sustainable growth.”

    The committee specifically “noted that liquidity withdrawals from the implementation of the TSA, elongation of the tenure of state government loans as well as loans to the oil and gas sectors could aggravate the liquidity conditions in the banks and impair their financial intermediation roles, thus affecting the economic growth, unless some actions are immediately taken to ease liquidity conditions in the market.”

    Emefiele added that despite the TSA, “banking system liquidity ratio remains moderate, consequently committee advised on the urgent imperative for banks to aggressively support the efforts of government at job creation by channeling available liquidity into target growth enhancing sectors of the economy such as agriculture and manufacturing, this is with a view to promoting employment creation through conscious efforts aimed at directing lending to the growth enhancing sectors of the economy.”

    The Committee considered that “the Bank (CBN) and Deposit Money Banks (DMBs) must strive to reverse the slowing GDP trajectory by actively staking up their efforts at catalyzing economy with substantial new loans to the target sectors earlier highlighted.”

    The committee also expressed concerns “that growth had come under sever strains arising from private and public expenditure in particular. It noted the impact of non-payment of salaries at the state and local government levels as a key dampening factor on domestic demands.”

    The CBN governor said year on year headline inflation continued to trend upward while month on month measures moderated.

    According to him, despite demand, the foreign exchange market “remains significant as oil prices continue to decline. Arising from this development there were indications that some of the banking sector performance indicators could be stressed if conditions worsen further.”

    The committee observed that the impact of the persistent decline in global crude oil prices on the fiscal position of government continues to reflect in rising credit to government.

    Emefiele said the committee also noted that the initial market reaction to the decision by JP Morgan to exclude the country from its government bond index for emerging markets “has largely dissipated as yields soon adjusted to their pre-announcement levels” but warned that “there may be second round effects over the next two months as the economy adjusts to that decision.”

    [ad id=”403656″]The committee reiterated its unwavering commitment to the Naira and exchange rate stability despite the pressures stressing that it is “mindful of the possibility of diversion of any extra liquidity to the foreign exchange market.”

    As a result of this development, the CBN was urged to “closely monitor the nature and sources of demand pressure in the foreign exchange market to ensure that funds are not diverted to demands for foreign exchange but applied to specific growth enhancing asset creation and lending by the banks.”

    It further noted that sectors like agriculture, MSMEs are sectors for rapid generation of productive employment and wealth creation as a result these sectors “must therefore be painstakingly encouraged.”

    The CBN governor stated that gross official reserves decreased modestly from US$31.20 billion at end-July 2015 to $30.63 billion on September 17, 2015. Based on this, the Committee underscored the imperative of growing and protecting the country’s foreign reserves and building fiscal buffers in the process of strengthening confidence in the economy which is essential for promoting growth and stability.

    Overall the MPC expressed optimism that business confidence will continue to be improved upon as the government continues to unfold its economic plans noting that “in addition, some of the reassuring measures of the administration including efforts aimed at resolving fiscal challenges at the sub-national levels and the fight against corruption and improved business environment will unlock investments.”

    At the end of the MPC meeting and after considering what it called “the underlying fundamentals of the economy, particularly the declining output growth, rising unemployment, evolving international economic environment as well as the need to properly position the economy on a sustainable growth path”, the MPC decided to reduce the Cash Reserve Requirement (CRR) from 31 per cent to 25 per cent.

    By a unanimous vote, the MPC voted to retain the lending rate or Monetary Policy Rate (MPR) at 13 per cent; retain the symmetric corridor of 200 basis points around the MPR; and retain the Liquidity Ratio at 30 per cent.

  • Forex: CBN moves against importers of rice, cement

    Forex: CBN moves against importers of rice, cement

    The Central Bank of Nigeria (CBN) has said that importers of rice, cement and other products will no longer have access to Foreign Exchange from the CBN, Banks and Bureau De Change for such importation.

    The CBN Governor, Mr Godwin Emefiele, who disclosed this at a news conference on Wednesday in Abuja, said the measure would prevent further depletion of the country’s foreign reserve.

    He said the country was spending huge amount to import things that could be produced locally.

    Emefiele said the apex bank would not continue to support the importation of such items through the use of the hard earned foreign exchange.

    Some of the products include margarine, palm kernel, palm oil products, meat and processed meat products, vegetables, private airplanes and jets, Indian incense, tinned fish, galvanised steel sheet, roofing sheet and furniture.

    “Importers who may want to continue importing these goods would have to sort their foreign exchange from their own private sources.

    “The CBN will continue to be vigilant around this policy, keep reviewing the list of items as it becomes comfortable that these items can be produced locally if we apply ourselves sufficiently.

    “This policy change is in line with the believe that Nigeria cannot attain its true potentials by simply importing everything into the country.

    “We have to decide what we really want for our country and I believe that the time is now for that deep and honest conversation,’’ he said, adding that in spite of relative positive GDP growth over the past seven years, there was no corresponding reduction in unemployment and poverty.

    He said bank’s analyses of the situation had compelled it to put to a stop forex access to some of these goods to encourage local production and consumption for economic development.

    The CBN chief also said that the Federal Government was spending about N1.3 trillion on the average annually to import rice, fish, sugar and wheat.
    “Why should we continue importing rice into Nigeria when vast amount of paddy rice produced by local farmers across rice belts are being wasted and ignored.
    “What will it take for these importers to stop importation and go into processing this locally produced rice.

    “Why are they not utilising large expands of arable lands for cultivation instead of importing rice into the country,’’ he said.

    Emefiele said that Nigeria had been creating jobs for other countries, while importing rice into the country.

    He said it was unfortunate that sardines, tooth picks, among others, were imported into the country.

    Emefele said the apex bank had no power to ban the importation of the items, but noted that it would work hard to ensure support for local production.

    He said local production would reduce poverty, unemployment and pressure on the reserve. “I believe that the current situation we found ourselves affords us a unique opportunity to embrace self sufficiency in Nigeria.
    “We should also reduce our appetite for everything and anything foreign, conserve reserve and create jobs at home for our people.

    “With full complement of the bank management, we would continue to look for areas which the bank can play a catalytic financial role to achieve the goal in the near future,’’ he said.

    On lifting of ban on importation of textiles and furniture by the Nigeria Customs, he said CBN would not provide foreign exchange for people that would want to import such products.

  • Senate okays Emefiele as CBN governor

    Senate okays Emefiele as CBN governor

    The Managing Director/Chief Executive Officer of Zenith Bank, Mr. Godwin Emefiele, was yesterday confirmed by the Senate as the governor of the Central Bank of Nigeria (CBN).

    He will assume duty on June 3 when the five-year tenure of the suspended Governor, Sanusi Lamido Sanusi, ends.

    This followed a request for his confirmation by President Goodluck Jonathan.

    Emefiele said he would probe the alleged N262 billion deficit in the expenditure of the CBN, pledging not to contravene the law.

    There was a mild drama before Emefiele was allowed into the chambers.

    Senator Kabiru Gaya, citing an order of the Senate, said Sanusi was still in court and thus it would be unwise to screen a successor.

    Gaya said: “Sanusi went to court, now in the event the court rules he should return, what will happen? Why don’t we wait until the case is over?”

    Senate President David Mark ruled Gaya out of order, saying the Senate would take responsibility for the action.

    Mark said: “Distinguished senator, you have done your best and you have been seen to have done your best.

    “Unfortunately, your best is not going to carry the day here. So let me and all of us, including you, take responsibility for what we are going to do.

    “Unfortunately, the matter before the court has nothing to do with what we are going to do now. So I rule you out of order.”

    Emefiele lamented the penchant by Nigerians to spend dollars instead of the naira.

    He said the development could ruin the economy, if not checked.

    Emefiele said he would probe the expenditure components of the CBN to know how the alleged N262 billion deficit became inevitable.

    Said he: “I will look into the budget expenditure components in the CBN, but I am aware we have what is called the operational expenditure profile as well as administrative expenditure profile.

    “I think and I imagine, I suspect more of the deficit would have come from areas pertaining to operational expenditure and if it is about operational expenditure, it means we cannot do anything about it.

    “This is because those were expenditures incurred in the course of open market operation, which is needed to ensure that we maintain a strong currency and have a good country.”

    Emefiele noted that the core mandate of the CBN was to achieve monetary and price stability, as well as ensure a strong foreign reserve.

    He added: “We are also expected to ensure we have a strong financial system.

    “On the back of this mandate, we will work hard to ensure we achieve macro-economic stability where inflation rate shall be seen to continue to come down and where we will continue to maintain a strong exchange rate for the country and build a strong foreign reserve.

    “We will ensure that if approved, whatever monetary policy decision taken would be those to improve the level of employment.

    “Because we know employment is important. We know today we have an employment emergency.

    “We must ensure whatever decisions we take at the CBN in the Monetary Policy Committee (MPC) would be those leading to improvement in the level of employment.

    “We would ensure we work with the manufacturing companies to ensure we improve on their level of production and by extension ensure we improve and achieve economic growth.”

    Emefiele said: “The Central Bank is the monitoring authority, whereas the Ministry of Finance is the fiscal authority. It is important that in their relationship they must work in one direction.

    “They must push in one direction. If we push in opposite directions, what you will find is that we are not going to achieve economic growth and development we are talking about.

    “It is important that both the Ministry of Finance and the Central Bank move in one direction.

    “If the decision is that we should pursue a conventional policy, both the Central Bank and the Ministry of Finance should be seen to move in one direction.

    “So, we expect that there should be a collaborative relationship where they will work together for the good of Nigerians.”

    He said he would ensure the naira is respected.

    “I think one of the core mandates of the Central Bank is to ensure we maintain a legal tender and they respect it and ensure whatever is done our naira has to be used as a legal tender.

    “I will take it as a primary responsibility to ensure the attempt to dollarize the Nigerian economy is discouraged. We should not allow it because it will create problem for the economy.”

    Emefiele said the CBN would not support devaluation because of its devastating effects on the economy.

    He said: “It is true we have seen the reserve dropping, it is as a result of speculative attack on the naira because I think there will be devaluation as a result of what is happening in the world today.

    “There is no need to worry about devaluation because it is a devastating action to be taken in the country, particularly because we are import-dependent.”

  • Senate comes out of their reactionary closet

    Senate comes out of their reactionary closet

    Last week, I indicated in this place that the Nigerian Senate had unashamedly become a unit of the Jonathan presidency. I was led to that conclusion by the way senators spoke and behaved over the controversial removal of the CBN governor, not because any of them openly confessed to loving the unparliamentary tactics of hanging Sanusi Lamido Sanusi. But since I made what I at first feared was a sweeping conclusion, ranking senators have openly and proudly acknowledged their attachments to the Jonathan presidency, an identification they have neither bothered to conceal nor explain nor even anchor on any reasonable foundation.

    We have both Senators Enyinnaya Abaribe and Victor Ndoma-Egba to thank for opening our eyes. If anyone should say Jonathan did not act within his powers in suspending Mallam Sanusi, argued Senator Abaribe disdainfully, they are making ‘spurious and self-serving’ arguments. Quite right, deadpanned Senator Ndoma-Egba combatively and with a barely disguised hint of exasperation. “Senator Abaribe is the official spokesman of the Senate,” he summed up. He obviously offered this reiteration for effect, in case anyone thought the jaunty senator spoke only his mind and not that of the majority of the Senate. Now that we know where the Senate stands, and how self-assuredly they array themselves against common sense and the people, it is up to us in the next polls to throw them out or watch our democracy get sucked into the autocratic vortex being created by the likes of Dr Jonathan.

    The Sanusi affair is of course not the first time the Senate has acted with reactionary zeal and insouciance. They worked hand in glove with the president on the budget and confirmation controversy, and they angrily endorsed the president’s position on the Rivers State affair, even to the extent of turning a blind eye on the indignity meted out to one of their own, Senator Magnus Ibe. At first I thought there was no end to the Senate’s conservatism; now I think there is no end to its reactionary proclivity.