Monday, 2 December 2013

Sanusi Canvasses for Appointment of Successor before April 2014

Sanusi-Lamido-Sanusi-1109.jpg - Sanusi-Lamido-Sanusi-1109.jpgCentral Bank of Nigeria (CBN) Governor, Mallam Sanusi Lamido Sanusi, has advised President Goodluck Jonathan to announce his successor about three months to the end of his tenure.
Sanusi is expected to step down in June 2014, when his tenure will expire.
The central bank governor said this in Lagos at the weekend, while responding to questions from participants at the 5th anniversary celebration, graduation and induction of the Women in Successful Careers (WISCAR).
Sanusi cited the United States where a successor to Ben Bernanke was announced a few months to the end of the Federal Reserve Chairman’s tenure.
“I think the issue of Bernanke and Yellen, if you remember, it started about two months ago and Bernanke’s tenure ends in December. Tomorrow (December 1), it will be six months to the end of my term, probably a bit early for the government to start talking about the next person.
“But I do hope that about two or three months before then, there should be some announcement. Central bank governors don’t comment on who they think their successor should be. It is not our business to do that; it is the president’s decision.

“But if I have an input at all, I will try to encourage that we announce a successor two to three months before the end of my tenure so that everybody would know who that person is, what his or her views are, and so people can prepare accordingly,” he said.
Commenting on the speculations over who might succeed him, Sanusi said some names had already been published in newspapers and expected more to be published later.
THISDAY had reported that those under consideration to take over from Sanusi fall into two categories comprising the outsiders, who are likely to steer a new direction for CBN and its monetary policies, and three insiders made up of the deputy governors at the central bank who are likely to continue on the path charted by the incumbent governor.
The outsiders, according to THISDAY investigation are the Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Mr. Mustafa Chike-Obi; the Group Managing Director/Chief Executive Officer, Access Bank Plc, Mr. Aigboje Aig-Imoukhuede; and Managing Director/Chief Executive Officer, First Bank of Nigeria Limited (FBN), Mr. Bisi Onasanya.
The second group is made up of insiders who share similar views with Sanusi on monetary policies and are expected to ensure continuity. They are the three deputy governors of the CBN: Dr. Kingsley Moghalu, Mr. Tunde Lemo and Dr. Sarah Alade.
Whoever succeeds Sanusi next year will be the 11th governor of the CBN.
Speaking further on the high interest rates in the country, the central bank governor maintained that interest rates should not be looked at in isolation.
According to Sanusi, delivering low interest rate is the easiest thing any central bank can do.
He explained:  “If I print enough money today, interest rate will come down to three per cent. But what will the rate of inflation be? What would the exchange rate be?
“For Nigerians who have no social safety net, bringing down inflation affects their lives. They don’t want to go to the market with their small salaries and find out that they cannot feed their families."
Continuing, the CBN governor said: “I have to keep inflation down for these people. I have to keep a stable exchange rate for you to pay the school fees of your children, I have to build up the reserves of this country, so that if there is an oil price shock, the country can continue going. The high interest rate is the price you pay for this.
“Every time we just focus on interest rates, we miss the point. The point is that we are not doing development. It is the role of the state to provide electricity; it is the role of the state to provide security and to provide roads.”
Source: ThisDayLive

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