THE ANTECEDENTS
When I heard about the appointment of Mallam Lamido Sanusi as the Governor of Central Bank, I immediately wondered why a former director of First Bank should be given such a sensitive appointment in view of the tendencies he could be biased whilst performing his job. I later dismissed that possibility with the appointment of former Shell staff, Mrs. Madueke as the Minister for Petroleum. That made it seem like it was common practice. I however cannot exempt her from being biased as well. I do not know all the details so I can’t say more. Whilst not pushing the case further, I laid the matter to rest hoping like many Nigerians for the best. It seems that the hope I had has since been dashed. At the time, in this state of hope, I hoped that Sanusi’s being a former bank director could help in tackling banking related issues on the CBN job. This one expectation I now admit was in fact sky rocketed. Looking at his profile at the time however, something that was difficult to dismiss was his subject of post graduate study being Sharia. What does Sharia have to do with a Central Bank job I wondered? Events that were to unfold, would tell, I hoped.
Sanusi had been appointed by late Yar Adua who seemed to be the Northern region’s pawn at the time for holding the entire country to ransom. This was evident in incidents that surrounded his bout of illness and rumours have it that Turai, his wife also had her fair share of influencing the entire nation’s scheme of things. Yar Adua’s successor, Jonathan though quite healthy seems to be a continuation of those attempts to curtail the interests of the nation because of personal ones. After spending a fortune on his presidential campaign, the aftermath of his ascendancy to the throne has not been commendable. Like his namesake in Jewish kingship and family history, Jonathan no matter his proclaimed good intentions and gentle mien seems to have no major grip on the throne. He seems to be a puppet and in absolutely no control of the affairs of the nation which he oversees as the Grand Commander of the Federal Republic. In truth, he has commanded little or no republic in the last few months!
Under his reign, we have had over 25 bombings in the nation across different parts of the country. Majority of these have been in the Northern region with some notable bombings being in Abuja, the Federal Capital Territory where he resides! The number of bombs from the Dele Giwa incident till now is actually not as much. Jonathan therefore is a trend setter. Whilst this is happening, we are expected not to be afraid. He would bring the perpetrators to book. We are still waiting. He said in his campaign “I will not let you down.” “I am one of you”. Not the bombers I hope. That would be disastrous.
THEN, JONATHAN DROPPED A BATON...
It is said that he that pays the piper dictates the tune. With the President, it seems that saying has no relevance. With the uncontrolled high handedness and undue outbursts from the Central Bank Governor, I expected him to have waded in with positive outcomes for all to see. This has not been forthcoming and it seems Sanusi’s scourge has not had its last punch yet.
AND SANUSI FLARED TO LIFE…
Since his appointment, Sanusi has assumed a status larger than life. In a sensitive sector where what you plan, project, say and do are all essential, Sanusi has played the part of a no holds barred de facto policy maker and dictator. One is not sure whether this approach came after he won the award of Best Governor of the Year Award and like PHCN or the national football team when praised it got to his head or it had strategically been waiting for an ideal time to manifest. Since the onset of the year, Nigerians have been bombarded with different policies and pronouncements that have triggered off alarms and caused concerns for individuals, investors and businesses. Though some of these directives have good intentions, the communication style has been extremely poor.
ALL AT ONCE?
The directive to unify bank account numbers was followed by the imposition of limits on cash withdrawals with extra charges for big sums. Despite a poor publicity campaign about the new directive, reports already have it that the cashless banking approach would soon commence in Lagos. This is so despite a segment of the population being either illiterate or not being Information technology savy. Certain banks laden with deposits and savings of members of the public were also said to face the threat of liquidation and/ or nationalization. All these within seven months and in a sector very much sensitive. As if that was not enough, he came up with the term “Islamic banking”. Between his study of Sharia and his emergence as CBN Governor, I now begin to see a connection. In an ideal sense, what business has Islamic banking in a secular state? The term non interest banking is more than preferable. Alhaji Dangote, also a Muslim teamed up with the Bank of Industry to set up an Enterprise Fund and there was nothing Islamic about it. Should the apex bank Governor with wider industry knowledge and responsibilities do the opposite? Rather talks have begun with interested parties. As if there is something bad in back tracking a bad policy after public outcry. When is enough going to be enough?
IN A SECTOR WITH A HISTORY OF DECADENCE?
Indeed, the Nigerian financial sector has experienced jeopardy over the past few years. There was the threat of thriving of wonder banks to banking deposits and bank sustainability as well as the loss of revenue by millions of Nigerian in these investment schemes after government stepped in. For some, these schemes were reported as being credible whilst others stand in doubt. The role of government in allowing the schemes to thrive only for the public to buy in and loose money after government intervention is highly questionable. We are however in Nigeria, where for some, anything goes.
This same financial sector witnessed the 25 billion naira capitalization project for the banks some years ago only for the irreconcilable report that some banks now need emergency capital injection once again. What is being done to the wealthy individuals who have defaulted loan payments or the suitable punishments for erring former Bank MDs? Nobody has an answer till date. In other countries, the matter would have been properly dealt with. Rather than abating the matter, the CBN Governor has made it even worse. His provoking statements and threats of liquidation targeted at these deficient banks allowed their share prices to drop and motivated formerly loyal customers to throng the banks for emergency withdrawals. All appeals from the banks to customers met deaf ears. Several jobs were lost in the aftermath of the capitalization and bank merger process years ago and unemployment or job losses increased with the global economic meltdown and its attendant effects. Several jobs would also be lost now. All because of one man’s unguarded tongue. I thought deliberations and problem solving were still viable options. Not so for the “distinguished scholar”.
In a country where the bad news of post electoral violence and an unchecked spate of bombings have signaled to foreign investors to either pull out or limit investments, the Central Bank Governor, Sanusi has just now punched below the belt!
A KNOCK OUT!
Saturday morning, 6th August 2011 brought the news that Bank PHB, Afribank and Spring Bank have all been taken over by government. I thought Bank PHB was in talks with some foreign investors. I knew that Afribank had policy regulator issues with Vine Capital, intending investors but in a sector which is responsible for a major stake in trading figures in the Nigerian Stock Exchange I expected the CBN Governor to come up with a more beneficial and sustainable solution. It does not seem that Sanusi has one or even thought in that direction. He seems to be happy at his alarm bell ringer role just like the town crier in the nearest village. This will definitely not get him any honours this year. Dr. Okonjo- Iweala wiped off the nation’s debt without this kind of hullabaloo.
REPERCUSSIONS
Stock prices are going to drop. The banking sector should brace up for some challenging times. The Stock Exchange and stock broking firms should look for either aggressive marketers who also have a tendency to lie or liaise with advance fee fraud experts and corrupt politicians to consider investing their stolen funds. Jobs would be lost. Unemployment will increase. Bank confidence would drop. People will start keeping money at home. Sanusi should be happy now as obviously there would be no need for big cash withdrawals now.
WHEN IS ENOUGH GOING TO BE ENOUGH?
In the midst of this, I wonder what would happen next. If labour could threaten to shut the nation down for compulsory holidays some weeks ago because of demands for minimum wage and abandon their threat hours later, I believe this presents a worthy cause for us to make good that threat. If Nigerians could go out en masse to ensure voting for good governance, I believe we can also stand up and fight for that good cause that we voted for. Unlike the title of Michael Jackson’s last album “This is not it”.
We also can turn deaf ears. No. This one has broken the camel’s back. I just do not know if the Nigerian camel has the guts to stand up for what is hers. She just seems happy having to get by. I just don’t want to get by. I want to get there. There is where I want to be. There is where I think is best for me and my country. There is where people in offices work for the good of people that put them there. I just do not care how it happens, because like the American film I have asked the question for decades when a new government comes in “Are we there yet?” to no avail. I heard that a little spark can cause a fire. I also heard that it does not take a tree to make a forest. I extend the call for action to others as well. I heard that sane people can indeed get mad. Mad about issues, mad about unperforming government and mad for positive change. Will we get up and create the change? I do not know. Living in a country where people have a poor sense of history, a high sense of political apathy, individualism and a record of constantly excusing and forgiving government, I really and sincerely, just do not know. Maybe you do.
