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Jonathan Suspends CBN Governor; Sanusi Vows To Challenge Action …Reps Reject Suspension …Naira Falls, Bond Market Falters
President Goodluck Jonathan yesterday suspended Mallam Sanusi Lamido Sanusi as the governor of the Central Bank of Nigeria (CBN).
The suspension order was contained in a statement by the Special Adviser to the President on Media and Publicity, Dr. Reuben Abati.
Abati said Jonathan had found out that Sanusi’s tenure as the CBN governor has been characterised by acts of financial recklessness and misconduct which are inconsistent with his administration’s vision.
He named a Deputy Governor of the CBN, Dr. Sarah Omotunde Alade, as the acting governor.
He said Alade would remain in charge until the conclusion of ongoing investigations into breaches of enabling laws, due process and mandate of the CBN.
The statement read, “Having taken special notice of reports of the Financial Reporting Council of Nigeria and other investigating bodies, which indicate clearly that Mallam Sanusi Lamido Sanusi’s tenure has been characterized by various acts of financial recklessness and misconduct 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.
“Being also deeply concerned about far-reaching irregularities under Mallam Sanusi’s watch which have distracted the Central Bank away from the pursuit and achievement of its statutory mandate; and being determined to urgently re-position the Central Bank of Nigeria for greater efficiency, respect for due process and accountability, President Goodluck Ebele Jonathan has ordered the immediate suspension of Mallam Sanusi Lamido Sanusi from the Office of Governor of the Central Bank of Nigeria.
“President Jonathan has further ordered that Mallam Sanusi should hand over to the most senior Deputy Governor of the CBN, Dr Sarah Omotunde Alade, who will serve as acting governor until the conclusion of on-going investigations into breaches of enabling laws, due process and mandate of the CBN.
“The president expects that as Acting Governor of the Central Bank of Nigeria, Dr. Alade will focus on the core mandate of the bank and conduct its affairs with greater professionalism, prudence and propriety to restore domestic and international confidence in the country’s apex bank.
“The Federal Government of Nigeria reassures all stakeholders in Nigeria’s financial and monetary system that this decision has been taken in absolute good faith, in the overall interest of the Nigerian economy and in accordance with our laws and due process,” Abati said.
However, hours after the suspension from office of Mallam Sanusi Lamido Sanusi as governor of the Central Bank of Nigeria (CBN), Zenith Bank of Nigeria’s Group Managing Director and CEO, Mr. Godwin Emefiele, has been nominated to replace him.
Already, President Goodluck Jonathan yesterday sent Emefiele’s name to the Senate for confirmation.
His tenure will, however, start from June 4, when Sanusi’s six-year tenure will end.
Along with Emefiele, President also sent the name of Adelabu Adekoya, currently an executive director with First Bank of Nigeria, to the Senate for screening and approval as deputy governor to succeed Tunde Lemo who retired late last year.
However,Sanusi, says he intends to challenge the legality of his suspension from office, to establish whether President Goodluck Jonathan has the legal authority to take such decision.
“It has never been my desire to hold on to a job. However, I believe if the CBN governor cannot be removed from office, then he cannot be suspended. He can be queried, but the exercise of the arbitrary decision to remove him must be challenged,” he said.
Mr. Sanusi was speaking to the cable news network, CNBC Africa, from Niamey, the Nigerien capital, shortly after news broke that he had been suspended from office by the Presidency.
The former governor, who was in Niamey to attend the ongoing conference of the West African currency zone with other governors of the Central Banks in West African, said he had to hurriedly leave venue of the meeting shortly after the Nigerian Ambassador to Niger confirmed to him the directive by the Presidency to inform him of the suspension.
Though he said he was not bothered about the suspension as an individual, as he was proud about his achievements and legacies, Mr. Sanusi said his plan to challenge the action bordered on the need to protect the independence of the CBN as an institution.
“As an individual, I was invited to serve my country, and I have always known that at any point the government feels it is time to go, I will go. But, in terms of the institution, it would be helpful to establish the principle by the court, and I think that is the step I intend to take,” Sanusi said.
In spite of his decision to challenge the decision in court “to establish once and for all if the President has the powers to do what he has done,” Sanusi said he has resolved not to return to the job.
“If it (the decision) is not challenged, then from now the next CBN governor cannot be independent. He can be suspended for any reason, and the independence of the CBN would be totally undermined. It is important to establish the point legally whether this can happen. I do plan to ask the court to confirm if, indeed, that authority exists. I will challenge it,” he said.
Expressing surprise that the decision took so long in coming, he pointed out that though one can suspend the individual, he did not believe the truth can be suspended.
“This is all about concerns around oil revenues and corruption in the oil sector. If the suspension is going to bring back the missing $20 billion, then it is fine,” he said.
He said his major concern was for the financial system, particularly the negative impact of the decision on the Nigerian economy and the need to protect the interest of the CBN.
He listed the legacies of his tenure at the CBN to include slow inflation rate, stable exchange rate, well governed banking system, robust reserves, independent central bank and financial inclusion, pointing out that he was satisfied with the service he rendered, which he would not want to see unravelled.
On allegations by the Presidency that his suspension was based on the report received from the Financial Reporting Council of Nigeria (FRCN) and other investigating agencies about various acts of financial misconduct that characterized his tenure, Sanusi said he intends to see what those allegations are when he returns to the country.
Sounding dismissive of the allegations, Sanusi said the only thing he was aware of, which are not new, were the questions asked by FRCN about the published CBN audited account, which he had since sent a response to the President, who did not give any feedback.
He dismissed insinuations that the decision was politically motivated, saying he has opted not to comment on that, pointing out that he believed it was the consequence of the actions he took while in office.
On the capacity of his successor, Sarah Alade, to sustain the momentum of his achievements, Sanusi described her as a very competent person, whom he has every confidence in to run the CBN successfully.
Nevertheless, officials of the State Security Service (SSS) have seized the travelling documents of suspended Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, shortly after he arrived Lagos from Niger, where he had gone to attend a meeting of governors of central banks in the West African sub-region.
Shortly after his plane landed at the ExecuJet Terminal of the Murtala Muhammed International Airport in Lagos, he was accosted by plain clothe operatives who detained him briefly and insisted he must surrender his passport.
They also insisted that he would not be allowed to leave the airport until the Lagos state director of the SSS arrives.
But after a while, the operatives had a change of heart after communicating with their superiors. The CBN governor was allowed to leave but only after his passport was confiscated.
The embattled governor had himself been aware of the plan to arrest him, compelling him to change his travel plans. He landed in Lagos instead of Abuja.
In Lagos, Sanusi’s associates and friends, led by a former minister of the Federal Capital Territory, Nasir El-Rufai, were on hand to receive him at the airport.
They drove out of the airport in a convoy heading towards Ikoyi.
Meanwhile, the House of Representatives yesterday rejected President Goodluck Jonathan’s suspension of the Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi.
The House took the decision yesterday after adopting a motion on the matter moved by Minority Whip, Samson Osagie.
Osagie argued that Sanusi’s suspension was unconstitutional and antithetical to Nigeria’s economy coming at the time the CBN governor raised some concerns about missing funds.
He said the timing was wrong and Sanusi should not be washed away as he was only carrying out his duties as the chief executive officer of the apex bank.
He said the manner in which Sanusi was suspended was bereft of fairness as the man was not given any query, adding that the issues he raised ought to have been diagnosed thoroughly.
However, the motion drew a lot of controversy among the lawmakers as some kicked against it vehemently.
Leading opposition on the motion, Deputy House Leader, Leo Ogor, said the president is constitutionally empowered to appoint any individual into an office and sack him when something is wrong.
The House was thrown into a moment of confusion when some lawmakers booed Ogor, in disagreement with his position.
Some lawmakers wanted to contribute further, but Speaker Aminu Waziri Tambuwal ended the matter by putting it to vote.
Overwhelming majority of the lawmakers present at the plenary voted in favour of the motion.
Meanwhile, President Goodluck Jonathan’s suspension of respected Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, yesterday, has triggered significant shock wave across the financial and money markets in Nigeria and elsewhere, causing the Naira to fall more than 1 per cent against the Dollar.
The Naira, quite expectedly, fell sharply yesterday to N169 to a Dollar.
The bond market also remained shut for the day.
Across the world, the shock wave of the president’s action has elicited serious reactions.
For instance, Head of Economic Research, ECOBANK, Angus Downie, said, “Sanusi did a fantastic job as governor and it will be very difficult to find someone that can continue his line of effort in restructuring the banking sector and strengthening monetary policy to the next phase.
“He was due to step down in June but when something unexpected like this happens it does raise concerns about what is happening with the direction of policy in Nigeria.
Economist at Nigerian Stockbroker, CSL, Alan Cameron, “It’s not so much what it does to the CBN (Central Bank of Nigeria), which we believe had a strong institutional foundation and skilled leaders, but what it says about the Presidency itself.
“If the Jonathan administration is willing to discard a safe pair of hands at a time when the currency is being tested anyway, it shows more political motivation than economic awareness.
“Speaking from the perspective of international investors, this is likely to go down badly.”
Economist, NKC Economists in Cape Town, South Africa, Melissa Verreyne, argued that, “This is very worrying for the central bank’s independence, and creates uncertainty about the future monetary policy direction.
“The strange allegations made against Mr Sanusi, and the fact that the government was not content with simply letting his term expire, appear to be aimed at sending a warning to outspoken central bank officials.
“The ability of the central bank to criticise fiscal policy and the remittance of oil revenue is important, as it improves the accountability of the public sector.
Africa Analyst, RENCAP, Yvonne Mhango, said, “Sanusi’s suspension does raise concern among investors about the ability to sustain the naira at present levels. We will see more pressure on the currency between now and June, and more weakness than we had anticipated prior to this news.
Head of Africa Research, Standard Chartered, Razia Khan, said, “The nature of the suspension will come as a significant shock to foreign portfolio investors, whose willingness to invest in Nigeria was very much influenced by the transparency and anti-inflation credibility associated with Sanusi’s policies.
Emerging Markets Strategist, Standard Bank, Samir Gadio, said, “This is a disruptive move which indicates that the CBN has de facto lost much of its independence.
“Clearly it is driven by political motives given Sanusi’s vocal criticism of oil revenue leakages and the opaque fiscal system in Nigeria.
Similarly, a former Minister of Education in the administration of former President Olusegun Obasanjo, Dr. Obi Ezekwesili, has accused President Goodluck Jonathan of being against accountability.
Ezekwesili said this in reaction to the suspension of the Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi.
In the reaction on her Twitter handle, Ezekwesili said for Sanusi to be removed while the inquisition into a missing $20 billion from the account of the Nigeria National Petroleum Corporation was ongoing was an indication that Jonathan hated accountability.
She tweeted: “For CBN Governor to be suspended when serious issue of missing $20 billion that he raised remains unresolved shows intolerance for accountability.”
Sanusi had raised the alarm about the missing money from the over $67 billion generated by the NNPC.
Ex-President Olusegun Obasanjo shows his stuff as he dances with an Iria dancer in Buguma, during his two-day visit to Rivers State
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DEPLOY YOUR CAPACITY, TECHNICAL KNOWHOW TO REVITALISE SONGHAI FARMS, FUBARA TELLS TASK FORCE
Rivers State Governor, Sir Siminalayi Fubara, has said that diversifying the economy of the State has become inevitable because of the need to solve the problem of food shortages while also providing jobs for the teeming unemployed youths.
These, he said, are the reasons why great care has been taken to critically look at the prospects of revitalising the Songhai Integrated Farms, which is located in Bunu Tai, in Tai Local Government Area of the State.
Governor Fubara insisted that if the problem associated with food shortages is tackled with good intent and purpose, about 40 to 50 percent of current problems of economic hardship plaguing the country and its people would have been solved.
Governor Fubara made the assertion while inaugurating the Chairman, Mr Biedima Oliver, and members of the task force saddled with the responsibility of supervising the revitalization of Songhai Integrated Farms by its partners: Vitalcrop Ventures Limited and Imagine Adama Limited, at Government House in Port Harcourt, yesterday.
Other members of the task force included, the Rivers State Commissioner for Agriculture, Engr Victor Kii; Commissioner for Finance, Barrister Emmanuel Frank-Fubara; Dr Ayebaesin Beredugo; and Mr Maurice Ogolo.
The Governor explained that it took him time to approve the constitution of the task force being inaugurated because of the ugly experience with the previous group that shown such interest.
Governor Fubara stated that a process was initiated and driven halfway into the handing over of Songhai Farms on concession to an interested partner who latter showed a total lack of the needed capacity to undertake such task.
He said, “As a matter of fact, if few of you could remember, we even conceded the place to an investor who came in after he had made his presentation, and we, believing that he has the capacity, we said okay to him, and we had already signed up.
“But something happened. He came back to tell us that he wanted us to give him a N5billion bank guarantee. We then asked him, why? If we have the N5billion, why do we need you to come and even revitalize Songhai Farms? We would have put that N5billion there ourselves. For that reason, we cancelled that arrangement.”
Governor Fubara said now that two separate companies have come together to indicate interest and given the assurance of having the needed capacity to drive the process, he is delighted to see them meeting that expectation.
Governor Fubara pointed to the expectation of the people who want to see the Songhai Farms back on stream on a sustainable basis.
That expectation, he insisted, is also what his administration wants to see actualised within its lifespan.
He noted, “We want to see food sufficiency, because we know when Songhai Farms comes on board, there will be food, which is one of the problems we are having in this country. If we are able to tackle the issue of food, 40 to 50 percent of our problem will be solved.”
Governor Fubara also stated that although he believes in the presentation made by the group and has taken their assurance to heart, but warned that he would not tolerate a repeat of what happened before.
The Governor said, “I hope your story will not be (end) halfway too. I hope you have the capacity and all the technical knowhow to handle it. It is not when we start now, after we had finished inaugurating the task force, you will come back to tell us that you need $2million. If we have $2million, we won’t need you. We will invest it by ourselves.”
Governor Fubara, however, praised the capacity of the Chairman of the task force, Biedima Oliver, saying that incidentally, he was one of the personnel that convinced the then administration to develop the Songhai Farms, and had worked with the Rivers State Sustainable Development Agency (RSSDA) to manage the project.
He said, “He knows and understands the workings of Songhai, and now that we are making you the chairman of the task force, we want to believe that you will make that place come back to life.
“I don’t have any doubt in your capacity. A few things you’ve touched, you turned them to gold. Please, bring it back to what we used to see in Songhai. Bring it back with the help of your committee.”
Governor Fubara assured that his administration will remain committed to providing all the necessary support that they may require to make their assignment a success.
He added, “So, I hereby inaugurate you. Your task is very simple: Do everything within your powers and with our support to make sure that Songhai becomes operational to the benefit, not just the people of Tai, but to the entire Rivers State and Nigeria as a whole”.
In his acceptance speech, the Chairman of the Task Force to Supervise the Revitalization of Songhai Farms with Vitalcrop Ventures Limited and Imagine Adama Limited, Mr. Biedima Oliver, expressed appreciation to Governor Fubara for the opportunity and confidence reposed in them to revive Songhai Farms.
Mr. Oliver assured that they will deliver the expected goal on Songhai Farms, and doing so on time and on target so that the good people of Rivers State can eventually be happy and also benefit from the huge investment.
Rivers State Governor, Sir Siminalayi Fubara, has declared that all the policies and programmes of his administration are tailored towards the protection of interest of Rivers people, especially the youths.
This, he said, is borne out of the importance his administration attaches to youths’ development and empowerment as leaders of tomorrow.
Fubara, according to a statement by his Chief Press Secretary, Nelson Chukwudi, disclosed this when he received the youths of Emohua Local Government Area under the auspices of “Emohua Youths For SIM” on solidarity visit to Government House, Port Harcourt, last Friday.
He said that his administration has put in place modalities that will boost the livelihoods and well-being of Rivers citizens, which youths of Emohua will also benefit when they materialise.
The governor, who spoke through the Rivers State Head of Service, Dr. George Nwaeke, pointed out that the recently awarded Elele-Omudiaga-Egbeda-Ubimini-Ikiri-Omoku Road, the ongoing Emohua-Kalabari Road, reinstatement of illegally sacked workers of Emohua Local Government Area and the approval for electrification of the area, are part of deliberate measures to open up the area to make life conducive and more meaningful for the people.
According to him, “Everything about the governor is putting the interest of Rivers State first. He is looking at and taking action on those things that we need to do to restart the wheels of progress in Rivers State.
“There are many things the governor has planned and is already doing that will boost the life and welfare of every citizen of Rivers State, but most importantly the youths.
“Growing up, I learnt that Egbeda is one of the biggest communities in the whole of Ikwerre, and it’s predominantly an agrarian community. They have food in Egbeda, they have food in Ubimini, they have food in Omudiaga and other natural resources. The whole world is tilting to agriculture, and this is the way to go.
“The Elele-Umudioga-Egbeda-Ubimini-Omoku road, when completed, will open up the area for real development. Your food and everything you produce there will now have value, they will no longer be thrown away. In all these, you the youths are going to be the utmost beneficiaries.”
He added, “Same will be applicable to the Emohua-Kalabari Road which will also, trigger development in the area, and you will be the greatest beneficiaries. When the LGA is also electrified, you will be having 24 or 20 hours of electricity, and those things the youths can do with electricity, you can stay at home and create wealth for yourself and children.
“All the totality of what the governor is doing, when they are completed, or even as some are completed now, the youths are going to be utmost beneficiaries.”
While acknowledging that youths are the true leaders of tomorrow and any government that fails to carry them along in the scheme of things is doomed to fail, the governor assured them of his administration’s commitment to always address issues concerning youths and ensure that they are part of his government.
He commended the youths for toeing the path of truth by identifying with his administration, urging them to sustain the tempo and shun evil, as his government will ensure that the trend whereby politicians turn youths to beggars are over.
He said, “Youths are, indeed, the leaders of tomorrow. The time of youth is a very important time. It a time that your parents or whoever is your leader at that time have to make the greatest investment in you. And any Government that decides to only carry the elderly, chiefs aling and abandon the youths is bound to fail,” he asserted.
“But I am happy that Governor Fubara has concentrated his energy on everything that will benefit the society, especially the youths.
“And based on these, I want to thank you for recognising what is good and calling it good, for shunning what is evil, for saying the Governor is standing for you.
“Let me tell you, you are on the right direction. Let me tell you again, Rivers State is the bride of Nigeria. The whole Nigeria is looking at what will happen here. As they look here and see you standing on the path of truth, this is a very important step that you have taken to right all the wrongs of the past, to make Rivers State stand on the tripod of justice, peace and security. That is what we are going to gain through the governor, taking all the wise actions that he has already initiated.
“The projects the governor is embarking on are meant to prepare nets for the youths to fish and put food on their table, hence you should continue to follow him.
“The SIMplified Movement brought upon by the governor will ensure that Rivers youths stop the habit of going to bow down before politicians, pledging loyalty before they can eat.”
Earlier, spokesman for the Emohua Youths for SIM, Comrade Ovamale O. Ovamale, had said that the visit by youths from the 14 political wards in Emohua Local Government Area was to thank the governor for the award of the Elele-Omudiaga-Egbeda-Ubimini-Ikiri-Omoku road, the approval for electrification of the area and reinstatement of sacked workers of Emohua Local Government Council, of which the youths were mostly affected.
According to him, “Siminalayi Fubara of recent has given Emohua Local Government road that links Elele to Omoku, which comprises over four communities in the local government.”
“Emohua Local Government has also been in darkness for eight years. No community in the local government that has light. But, of recent, because of the passion and love the governor has for the people of Emohua, he has approved the electrification of the local government.
“Also, the illegal sack of Emohua Local Government workers, for which the youths were mostly affected and without the approval of the Local Government Service Commission, the governor, in his compassionate nature, has reinstated them, and that is why we said we must come and thank His Excellency”, he said.
Rivers State Governor, Sir Siminalayi Fubara, has assured that his administration will collaborate and continue to consult widely in delivering a liberated State experiencing enduring peace.
Fubara said, in doing so, he would not operate as a dictator but as a member of a team that has the best interest of the State at heart and determined to leave a lasting legacy that can be celebrated.
The governor spoke during the formal presentation of Certificate of Recognition and Staff of Office to the Amanyanabo of Okochiri Kingdom, King Ateke Michael Tom, as first class tradition ruler, at Government House in Port Harcourt, yesterday.
Fubara stated that, during the Sixth State Executive Council meeting, N80.8billion was approved with 50 percent contract value paid already as the Government awarded the construction of the Elele-Egbeda-Omoku Road.
He said the project will be funded from the savings from Internally Generated Revenue (IGR) to underscore his administration’s prudence without also borrowing to complete the project.
“We are at a crossroad in our State where we all need to stand for what is right. It happens once in a life time. So, for now, be one of those people that will be in the course to liberate and free our dear State.
“And I know strongly that having the support of a peace-loving Amanyanabo of Okochiri Kingdom, having the support of the wonderful Council of Chiefs, having the support of the great people of Rivers State, we will bring peace in our State. We will do those things that are right to develop our State.
“We will continue to consult. We will not act as dictators. We will act as people who know that one day, we will leave, and when we leave, the way we have acted will speak for us. We will not force people to talk good about us. Our legacy will be a signature for how we led”, the governor said.
Fubara explained that he acted within the ambit of the law to upgrade the traditional stool upon which King Ateke Tom sits in recognition of his efforts in promoting peace in Okrika, and indeed, the State, and urged him to continue to do justice to everyone.
In his speech, Commissioner for Chieftaincy and Community Affairs, Hon Charles Amadi, congratulated King Ateke Tom for being formally presented with the Certificate of Recognition and Staff of Office as first class traditional ruler.
Also speaking, former Transport Minister, Chief Abiye Sekibo, thanked the governor for fulfilling his promise of upgrading the traditional stool of Okochiri Kingdom, and pledged the support of Kirike Se people to his administration.