mikeansy: my question is when will SLS do the honourable thing and resign?

The last time a country went on this kind of uncontrolled new money denomination invention and printing. We know where it ended!!! Zimbabwe ended up having valueless money and so much inflation that you require hundreds of thousands of Zimbabwe dollar to buy a loaf of bread. This phenomenon became know as Mugabe Economics!!!!

SLS should resign for proposing the rejected Mugabe Economics. He should also resign because the Prseident has demonstrated by overruling him that he no longer has any confidence in his stewardship.

Firstly, I am not yet 100% sure that twitter handle belongs to El Rufai, unless I missed the day he came out to confirm it was his because anybody can open a twitter account in anybody's name.

With regards to the point you raise about Sanusi, I would be quite willing to give control of the economy to a man who is willing to experiment and come up with something tailor made for us. The only issue I have with Sanusi is that he seems to copy and paste economic theory to the Nigerian space with seemingly little recourse for local consideration. Nigeria has never had a backed currency, always been a floating currency very suceptible to global changes. I am not comfortable with the current role CBN has tended to focus on of late of just printing money. I would have been a bit more impressed if I had seen policy initiatives that went some way in tackling government overspending and corruption, reducing inflation, reducing cash supply and other policies that allow the naira appreciate a little since we practically import EVERYTHING, policies towards regulating banks and freeing up liquidity so banks are able to support government capital projects and SMEs, things like that. We need tighter fiscal control and innovative policies that produce local sourced funding for capital projects without loosing the reins on spending.

My only issue with 5000 note is the mention of its release and what seemed little recourse for control policy.

Like Gbawe said his integrity is under question here and if Sanusi is as principled as he always claimed he will see reasons to resign.

Given that nobody can make sense of what the N5000 note is for some are even questionning Sanusi's motivation and wonder if the reason for this policy is so enough money can be diverted to Sanusi's polical interest/ambition?

So his moralility is being called into question too and he should go. This is what honourable and principled men will do, lets see what Sanusi does

hercules07: I believe SLS thinks by resigning he is admitting defeat, GEJ should not have overruled him on that issue sha.

Either way, it just appears as if Sanusi has become another unprincipled politician who has now compromised himself. Let us remember that many respected him because he was the "man of integrity" ready to lecture the Senate annd stand up to anyone. This is a direct and public affront on his decision-making.

Gbawe:

Either way, it just appears as if Sanusi has become another unprincipled politician who has now compromised himself. Let us remember that many respected him because he was the "man of integrity" ready to lecture the Senate annd stand up to anyone. This is a direct and public affront on his decision-making.

How is he a politician when he's not elected but rather appointed?

Akanbi_edu:

How is he a politician when he's not elected but rather appointed?

I mean he may have his eyes on politics now to the extent this is influencing his outlook. Ordinarily, Sanusi should resign over this saga because GEJ has 'thrown him to the Wolves'. If he has future Political ambitions , and if he is not principled enough, Sanusi may swallow his humiliation to remain in a job that helps his future plans. Despite being appointed, he may now be a total political animal in outlook. It was only recently GEJ reportedly castigated up to 20 Ministers to face their jobs after it was revealed they had 2015 gubernatorial ambitions.

Gbawe:

I mean he may have his eyes on politics now to the extent this is influencing his outlook. Ordinarily, Sanusi should resign over this saga because GEJ has 'thrown him to the Wolves'. If he has future Political ambitions , and if he is not principled enough, Sanusi may swallow his humiliation to remain in a job that helps his future plans. Despite being appointed, he may now be a total political animal in outlook. It was only recently GEJ reportedly castigated up to 20 Ministers to face their jobs after it was revealed they had 2015 gubernatorial ambitions.

Are you referring to the 5000 saga? That's not enough to lose credibility. I don't see humiliation here.

Sanusi talks too much for a reserve bank governor.
the only reason why i give him the time of day is that he dealt with the likes of Atuche,Akingbola and Ibru.
Unfortunately he has not dealt with the systemic issues that produced such crooks. A new breed of gangsters have emerged in the industry. Even some of the CBN appointed execs in some of the rescued banks were worse.

Having said that, SLS is best suited for temp role something like a task force.
He does not have the cerebral capacity nor the temperament for the reserve bank governorship.
The man just talks too much for such a sensitive position. some of his propositions are not even well thought out and he defends them like a fanatic.

Akanbi_edu:

Are you referring to the 5000 saga? That's not enough to lose credibility. I don't see humiliation here.

Yes. My brother, the issue was a must-win battle of will essentially between Sanusi and others who opposed the proposal. The FG seemed to back Sanusi fully and even came out to issue it's usual "no going back talk". It seems the Senate have now cowered GEJ and he has simply decided to leave Sanusi out to dry. The Central Bank Governor Job is a very, very important one not to be undermined or trifled with. A Principled CBN Governor will naturally feel this may happen the next time he attempts to initiate vital policy in the interest of the Nation. Everyone can walk away but it is Sanusi left holding the baby since this is essentially his proposal.

http://www.punchng.com/news/no-going-back-on-n5000-note-fg-%E2%80%A2-dangote-otedola-others-back-cbn-currency-plan/

No going back on N5000 note – FG • Dangote, Otedola, others back CBN currency plan
September 5, 2012 by Olalekan Adetayo, Friday Olokor and Ade Adesomoju
Minister of Planning, Shamsudeen Usman


THE POPULAR outcry against its introduction notwithstanding, the entry of the N5000 note into the nation’s money market is a fait accompli, the Federal Government has said.

Minister of Planning, Shamsudeen Usman, who spoke to journalists at the meeting of the Economic Management Team on Tuesday said that President Goodluck Jonathan had approved the proposal to print the N5000 denomination. He added that government would push ahead with the printing.

“The discussion today (Tuesday) was basically to endorse(the introduction of N5000 note). Mr. President had already approved and that is the only requirement by law. The CBN (Central Bank of Nigeria) is to propose and Mr. President is to approve,” he said.

Jonathan presided over the EMT meeting which has Alhaji Aliko Dangote, Mr. Femi Otedola, Mr. Atedo Peterside, Mr. Aigboje Aig-Imoukhuede and other top government officials as members.

Denomination of controversy

The CBN governor, Lamido Sanusi, penultimate Thursday announced a proposed comprehensive review of the nation’s currency with the highlight been the introduction of the N5000 note and conversion to coins the present N5, N10 and N20 notes.

But Nigerians, especially economists, have argued that the introduction of the note would lead to inflation in the system.

Just on Tuesday, about 500 protesters led by a former member of the House of Representatives, Dino Melaye, demonstrated in front of the CBN office in Abuja against the N5000 note.

Melaye, the leader of the placard-carrying protesters, said the proposed N5000 note would send a wrong signal about the worth of the Naira.

Lagos-based lawyer, Femi Falana, has also written to the Attorney-General of the Federation, Mohammed Adoke, to use his office to stop the CBN from introducing the N5000 note.

But Usman said there was no correlation between higher notes and corruption and that it did not contradict the CBN’s cash-lite policy.

First, SLS is not interested in politics. He will not. He was never a politician. He used to be a critic at best. This is authoritative.

Second, there is nothing new in President over ruling a Central Bank's decision. This is not a very fundamental decision like interfering in sacking criminals or shielding criminals. Currency redomination, to me, even if it doesn't adversely affect the economy, it's benefit(more efficient payment system) is not something that goes to the root of the economy, so I think it is reversible. This is not an integrity matter. And the hesitation the President displayed before finally succumbing to public outcry shows he had more confidence in SLS, but the reversal was due to political expediency. So I don't know what necessitates resignation here. It's not an integrity issue anyway. Economic policy giving way for socio-political consideration is not an aberration. The president has not asked him to do anything contrary to the law. Neither was the president protecting private interest by his action.

Jarus: First, SLS is not interested in politics. He will not. He was never a politician. He used to be a critic at best. This is authoritative.

Second, there is nothing new in President over ruling a Central Bank's decision. This is not a very fundamental decision like interfering in sacking criminals or shielding criminals. Currency redomination, to me, even if it doesn't adversely affect the economy, it's benefit(more efficient payment system) is not something that goes to the root of the economy, so I think it is reversible. This is not an integrity matter. And the hesitation the President displayed before finally succumbing to public outcry shows he had more confidence in SLS, but the reversal was due to political expediency. So I don't know what necessitates resignation here. It's not an integrity issue anyway. Economic policy giving way for socio-political consideration is not an aberration. The president has not asked him to do anything contrary to the law. Neither was the president protecting private interest by his action.

Jarus, I know you are an ultra-loyal fan of Sanusi but that should not blind you to the fundamental error of what you write above that is rather a blase dismissal of what obtains in developed Nations. I guess Nigerians have their own 'unique' ways. In most Nations, it is paramount the Central bank is entirely independent and not subject to the whims and caprices of politicians or political machinations. We all know what happened here that can't be spun. The legislative arm made GEJ 'blink' and Sanusi had to be the fall guy.

In the UK, the central bank Governor is such a powerful position, with so much integrity vested in it, that David Cameron may actually be removed by the political system if it is deemed that he has frivolously intervened with the duty of Mervyn King. SLS is well-read. He knows what obtains worldwide. If he is not interested in politics as you claim, then he would take the obvious choice as 99 out of 100 of his peers would do elsewhere. This is a frivolous reversal by GEJ. It comes because he is walking on eggshells currently with the legislators having had his ways controversially against them several times in the past.

Excerpt from the book "Central banking in Theory and Practice" by Alan S Blinder :

http://books.google.co.uk/books?id=UWWv9wV4yIkC&pg=PA48&lpg=PA48&dq=can+a+president+overrule+a+central+bank+governor&source=bl&ots=WPH-vL8zRC&sig=YTrq5NeCdO2W27jiXSXozLPN35M&hl=en&sa=X&ei=b_xdUIT8NqW10QXvyICICQ&sqi=2&ved=0CB4Q6AEwAA#v=onepage&q=can%20a%20president%20overrule%20a%20central%20bank%20governor&f=false

Lohmann's idea is correct in both economic theory and political theory. In a democracy there should, after all, be some checks on the behaviour of an over-zealous central bank. but its practical application is tricky, to say the least.

No central bank can claim to be independent if its monetary policy decisions are routinely reversed. This remedy must be reserved for truly extraordinary circumstances. So any real-world government that adopts the lohmanns amendment must ensure that Politicians overrule the central bank very rarely.

LOL Tongue in cheek explanations here and there.

I think the only honourable thing for Sanusi to do right now is to resign.

If he does not, then he should never come out and talk claiming to be above everyone else.

His reputation has officially been taken to the cleaners.

I agree with El-Rufai.
The same brain that he used to destroy once vibrant banking industry.
The same brain he use to help over 800 companies to close down in 3 years
The same brain he use to mop up cash from circulation every month at 18% interest rate, thereby stifling currency circulation and promote poverty
The same brain he use to think he would force 160 million people to start carrying coins
The same brain he used think removal of fuel subsidy will not increase inflation.
The same brain he use to turn CBN into donor agency.....
That brain is good but very dead for a post such as CBN governor.

Gbawe:

Jarus, I know you are an ultra-loyal fan of Sanusi but that should not blind you to the fundamental error of what you write above that is rather a blase dismissal of what obtains in developed Nations. I guess Nigerians have their own 'unique' ways. In most Nations, it is paramount the Central bank is entirely independent and not subject to the whims and caprices of politicians or political machinations. We all know what happened here that can't be spun. The legislative arm made GEJ 'blink' and Sanusi had to be the fall guy.

In the UK, the central bank Governor is such a powerful position, with so much integrity vested in it, that David Cameron may actually be removed by the political system if it is deemed that he has frivolously intervened with the duty of Mervyn King. SLS is well-read. He knows what obtains worldwide. If he is not interested in politics as you claim, then he would take the obvious choice as 99 out of 100 of his peers would do elsewhere. This is a frivolous reversal by GEJ. It comes because he is walking on eggshells currently with the legislators having had his ways controversially against them several times in the past.

Excerpt from the book "Central banking in Theory and Practice" by Alan S Blinder :

http://books.google.co.uk/books?id=UWWv9wV4yIkC&pg=PA48&lpg=PA48&dq=can+a+president+overrule+a+central+bank+governor&source=bl&ots=WPH-vL8zRC&sig=YTrq5NeCdO2W27jiXSXozLPN35M&hl=en&sa=X&ei=b_xdUIT8NqW10QXvyICICQ&sqi=2&ved=0CB4Q6AEwAA#v=onepage&q=can%20a%20president%20overrule%20a%20central%20bank%20governor&f=false

That was interesting, especially the quoted excerpt from the book. Notwithstanding, I don't see this policy as a breach of integrity which can warrant resignation.

mikeansy: Like Gbawe said his integrity is under question here and if Sanusi is as principled as he always claimed he will see reasons to resign.

Given that nobody can make sense of what the N5000 note is for some are even questionning Sanusi's motivation and wonder if the reason for this policy is so enough money can be diverted to Sanusi's polical interest/ambition?

So his moralility is being called into question too and he should go. This is what honourable and principled men will do, lets see what Sanusi does???

The kind of unbridled arrogance and rudeness which he displayed on the N5,000 note and coins is enough to make a 'Sanusi' resign. He tongue-lashed the majority that opposed it and did not mind abusing us. So where is he putting his face now if he had so much conviction as to be ready to offend everybody. He should simply demonstrate that he is ultra-principled by taking a walk.

Jarus:

That was interesting, especially the quoted excerpt from the book. Notwithstanding, I don't see this policy as a breach of integrity which can warrant resignation.

It may not be a breach of integrity but how does he feel now? Still like that arrogant peacock that was talking down to Nigerian citizens and bodies? Does he feel proud of himself now?

Is this not enough to make a principled professional who has been sacrificed on the altar of political expediency to throw in the towel just to prove a point especially if he's not interested in politics?

Gbawe:

I mean he may have his eyes on politics now to the extent this is influencing his outlook. Ordinarily, Sanusi should resign over this saga because GEJ has 'thrown him to the Wolves'. If he has future Political ambitions , and if he is not principled enough, Sanusi may swallow his humiliation to remain in a job that helps his future plans. Despite being appointed, he may now be a total political animal in outlook. It was only recently GEJ reportedly castigated up to 20 Ministers to face their jobs after it was revealed they had 2015 gubernatorial ambitions.

Word.

Jarus: First, SLS is not interested in politics. He will not. He was never a politician. He used to be a critic at best. This is authoritative.

We'll wait and see. So many people 'authoritatively' see facts that are contrary.

I have been saying it for a long time that SLS is an empty barrel. He's not fit to be CBN governor. His policies are not well thought out. Besides, his actions and utterances are not befitting of a man leading such a sensitive institution. He's a plagiarist as well. He embodies all that's wrong with this country.

Jarus:

That was interesting, especially the quoted excerpt from the book. Notwithstanding, I don't see this policy as a breach of integrity which can warrant resignation.

My brother, this is what Obama lamented ,with a broadside aimed at Nigeria, when he stated that "African Nations needed strong institutions and not strong men". The CBN should be totally independent of Political machinations. It is entirely sad that Nigerian presidents don't get this and our Central Bank governors can never rise up to the occasion by doing the principled thing. Jonathan has acted as a "strong man" here and has ridiculed the independence of the CBN.

Soludo too should have gone when Yar Adua forced him to reverse his re-denomination effort. We cannot trivialize these things. Central banks must be entirely free to formulate monetary Policy. Generally, they should only be over-ruled rarely. Nigeria is run, adhoc, like a rogue State and everyone (President and CBN Governor in this case) subscribe to the arrangement when they should not. It is the monetary policy committee that should overrule Sanusi and not politics.

Let me use real examples to make the point about Nigeria and Political arbitrariness towards the CBN that everyone involved accepts.


Google "President overrules central bank governor".

Contradicting your opinion, the only directly pertinent examples of Presidents overruling Central bank Governors are:


"Sanusi does U-turn, suspends introduction of N5000 note...under ..."

"allAfrica.com: Nigeria: Yar'Adua Halts Soludo on New Naira Policy"

Gbawe:

My brother, this is what Obama lamented ,with a broadside aimed at Nigeria, when he stated that "African Nations needed strong institutions and not strong men". The CBN should be totally independent of Political machinations. It is entirely sad that Nigerian presidents don't get this and our Central Bank governors can never rise up to the occasion by doing the principled thing. Jonathan has acted as a "strong man" here and has ridiculed the independence of the CBN.

Soludo too should have gone when Yar Adua forced him to reverse his re-denomination effort. We cannot trivialize these things. Central banks must be entirely free to formulate monetary Policy. Generally, they should only be over-ruled rarely. Nigeria is run, adhoc, like a rogue State and everyone (President and CBN Governor in this case) subscribe to the arrangement when they should not.

Obviously, his N5,000 and coins debacle were not well thought-out hence his resort to abuse and condescending statements. He over-heated the polity for nothing (and he has done this many times to the fragile economy). The mere fact that the policy was roundly condemned and overruled is enough reason for him to resign. But he won't for so many reasons.

Jarus: First, SLS is not interested in politics. He will not. He was never a politician. He used to be a critic at best. This is authoritative.

Second, there is nothing new in President over ruling a Central Bank's decision. This is not a very fundamental decision like interfering in sacking criminals or shielding criminals. Currency redomination, to me, even if it doesn't adversely affect the economy, it's benefit(more efficient payment system) is not something that goes to the root of the economy, so I think it is reversible. This is not an integrity matter. And the hesitation the President displayed before finally succumbing to public outcry shows he had more confidence in SLS, but the reversal was due to political expediency. So I don't know what necessitates resignation here. It's not an integrity issue anyway. Economic policy giving way for socio-political consideration is not an aberration. The president has not asked him to do anything contrary to the law. Neither was the president protecting private interest by his action.

Jarus, SLS special adviser on NL matters.
You are too biased to proffer an opinion on this matter.
btw, you changed your number and did not say.
Called you all through the fast and subsequent sallah but your phone was switched off. Abi you go lesser Hajj?

Pukkah:

Obviously, his N5,000 and coins debacle were not well thought-out hence his resort to abuse and condescending statements. He over-heated the polity for nothing (and he has done this many times to the fragile economy). The mere fact that the policy was roundly condemned and overruled is enough reason for him to resign. But he won't for so many reasons.

The man's comportment and personality is just not suited to the reserve bank governorship. He talks way too much.
I repeat that he will do wonders as a task force chairman. one of these task forces designed to catch a bunch of thieves. I'll remain grateful to him for the way he smoked out and chased Atuche/Akingbola/Ibru out of town.

Jarus: First, SLS is not interested in politics. He will not. He was never a politician. He used to be a critic at best. This is authoritative.

Jarus, don't go there o!
This man gave his word to Ijeoma Nwaogugu on some policy decision (around that Akingbola/Ibru/Atuche) and Ijeaoma went to down with it,sounding smug.
Within 24hrs, SLS justified the rumour in town and Ijeoma was made to look like a fool and with egg on her face.

mbulela:
Jarus, don't go there o!
This man gave his word to Ijeoma Nwaogugu on some policy decision (around that Akingbola/Ibru/Atuche) and Ijeaoma went to down with it,sounding smug.
Within 24hrs, SLS justified the rumour in town and Ijeoma was made to look like a fool and with egg on her face.

I didnt get what you meant here.

I read Ijeoma very well and I know all the clashes she had with SLS and where she supported him. I even have personal emails from Ijeoma on Sanusi.

Could you expatiate further on the exact one you're talking about?

I know the most ferocious exhange between SLS and Ijeoma was in 2009 when Ijeoma wrote her series, 'Is it a crime to owe 1-3?' and another one she wrote 'Again, Sanusi overreaches himself'. She has also written many articles in support of SLS, including one she titled 'Sanusi: lone ball juggler?'

mbulela:

Jarus, SLS special adviser on NL matters.
You are too biased to proffer an opinion on this matter.
btw, you changed your number and did not say.
Called you all through the fast and subsequent sallah but your phone was switched off. Abi you go lesser Hajj?

No vex bro. Na my new coy give me new free line and I don dumb that one, though the SIM still dey. :Dgo get your no from one of my phones at home and get you my new number

I

Jarus:

I didnt get what you meant here.

I read Ijeoma very well and I know all the clashes she had with SLS and where she supported him. I even have personal emails from Ijeoma on Sanusi.

Could you expatiate further on the exact one you're talking about?

I know the most ferocious exhange between SLS and Ijeoma was in 2009 when Ijeoma wrote her series, 'Is it a crime to owe 1-3?' and another one she wrote 'Again, Sanusi overreaches himself'. She has also written many articles in support of SLS, including one she titled 'Sanusi: lone ball juggler?'

it was an article where she claimed she had spoken to SLS and he had confirmed to her that there was no plan to move in on the earlier mentioned 3 and take over the banks. Less than 48hrs later, he did exactly what Ijeoma had written SLS told her he had no plan of doing and she had claimed were unfounded rumours. Wish i had the article's title. Used to respect Ijeoma but her arrogance in the face of that matter as she refused to apologise to her readers and her recent vicious attack on Otteh while putting up an infantile defence for Ndi Okereke made me give up on Ijeoma.

mbulela:

it was an article where she claimed she had spoken to SLS and he had confirmed to her that there was no plan to move in on the earlier mentioned 3 and take over the banks. Less than 48hrs later, he did exactly what Ijeoma had written SLS told her he had no plan of doing and she had claimed were unfounded rumours. Wish i had the article's title. Used to respect Ijeoma but her arrogance in the face of that matter as she refused to apologise to her readers and her recent vicious attack on Otteh while putting up an infantile defence for Ndi Okereke made me give up on Ijeoma.

Ijeoma can be arrogant. She once had hot phone exchange with SLS, but she later apologised. She also once caused stirs in Tinubu's camp when she wrote an article finishing Tinubu.


On Ndi, I read the article, I don't think she was defending her, she only acknowledged her brilliance and the was she took on the House of rep guys. I agree with her Ndi got more swags, and perhaps brain, than Otteh

Jarus:

Ijeoma can be arrogant. She once had hot phone exchange with SLS, but she later apologised. She also once caused stirs in Tinubu's camp when she wrote an article finishing Tinubu.


On Ndi, I read the article, I don't think she was defending her, she only acknowledged her brilliance and the was she took on the House of rep guys. I agree with her Ndi got more swags, and perhaps brain, than Otteh

Jarus, please read that article again.
Anyway, i may be biased cos i have a soft spot for Ms. Otteh. the lady fine, i no go lie