Disregarding the many critics of the Central Bank governor, President Umaru Yar’Adua may have given the nod to Chukwuma Soludo to continue as the governor, informed sources close to the government said last week.

Just as NEXT reported in its March 15 edition, the boast of Mr. Soludo that his reappointment was in the bag came to pass not on the basis of any giant strides in our flattened economy, but on the basis of his closeness to the wife of the President, Turai Yar’Adua and her daughter, Zainab.

Mr.Soludo’s re-appointment, two weeks to the end of his first five years, is on the heels of an indictment by a Federal Government Panel hanging on his head like a sword of Damocles over his roles in the Africa Finance Corporation (AFC) scandal.

The panel, in its report said that the CBN Governor used the AFC for “Round-Tripping”, a scheme whereby bank executives and Bureau-de-Change operators speculate on their demand for foreign exchange to get a higher allocation, with a view to selling at a higher exchange rate.

This is a criminal offence under the Money Laundering Act. It further recommended that “Government should take appropriate action against Prof. Chukwuma Soludo and Mr. Austine Omeruwa, (AFC managing director) who are instrumental to this action.

The report of this panel, submitted to the Attorney General of the Federation, Michael Aondoakaa, nine months ago, has been swept under the carpet. Remarkably, Mr. Aondoakaa had in a letter to the panel, declared the AFC illegal.

When asked the reason for the delay in the implementation of the panel’s recommendations last week, Olusegun Adeniyi, the president’s spokesman retorted, “What’s your problem with Soludo?”


A pat on the back

His boss is patting him on the back,” says Emmanuel Onwuka, a professor of Economics at Ambrose Alli University, Ekpoma, Edo State. “The Federal Government is not interested in the report. Someone that was alleged to have committed a crime, should he get a second term?” queries Mr. Onwuka. “It is very possible that the powers that be were aware of what he was doing because there was no way he could have done that without the authority of those who put him there.”

Beyond this issue is also one that bothers on regulation, especially of the banks, the core duty of the Central Bank. A banker who does not want his name mentioned says the Central Bank, under Mr. Soludo performed below par.

He recalled Mr. Soludo’s comments at the onset of his tenure that he was going to improve the monetary policy management function of the bank, which the banker claims he failed to do.

Monetary policy management involves regulation of the liquidity in the system, interest rate regime, lending rate and management of a nation’s external reserves. “What were the inflation rate and the exchange rate to the dollar when Soludo took over and what are the rates now,” an economist asks in an interview. He believes this is necessary for a better assessment of Mr. Soludo’s time as CBN governor. While he concedes that the global economic crisis has impacted on Nigeria’s economy, he condemns the “way and manner our foreign reserve has been managed by Soludo.”

The banker adds that the “ineffectiveness of the Central Bank under the watch of Soludo has given rise to clamour from some bankers that it will be best to relieve the Central Bank of the monetary policy management so that it can fully concentrate on its banking supervision function.”

There are also plans by the National Assembly to review the CBN Act based on the belief that the bank is saddled with too many functions. Mr. Soludo was also hampered from doing a thorough regulatory job perhaps due to what has been described as his “incestuous relationship” with some banks chiefs, many who have worked assiduously for his new term for him.

Signature achievement

There is, however, a near-universal agreement on Mr. Soludo’s signature achievement in the past five years: the consolidation of Nigerian banks. Shortly after he became governor in July 2004, he announced that all banks should shore up their capital base to N25 billion which gave rise to the emergence of 25 banks. They later became 24 after the merger of two: Stanbic and IBTC Chartered.

“The use of IT has increased in our banks,” says Muda Yusuf, the Director General, Lagos Chamber of Commerce. “We now have online banking unlike what we used to have in those days.”

“It was an unqualified success,” says a banker in Lagos.

But Mr. Onwuka, while acknowledging Soludo’s success in this regard, was sceptical of the banks’ real strength. “They can compete internally but I don’t know to what extent they can compete externally. If they are as strong as they are claiming, why are they still getting protection from the Central Bank?”


Twilight of the first term.

After the initial sparkles, the twilight of Mr. Soludo’s tenure is characterised by a dull and unappealing hue. His recent policy drive has been likened to the “futile struggle of a chicken with its head chopped off”. He announced that a cap had been placed on lending and deposit rate at 22 per cent and 15 per cent maximum, moving the interest determination from the market-based approach.

Mr. Yusuf advised Mr. Soludo to “see how we can get a more stable financial system and also strengthen the regulatory capacity of CBN because there are still some problems of effectiveness in regulation,” as he gets another five year term.

He said Mr. Soludo should also see how the interest rate could be reduced further to aid investment in the real sector while Mr. Onwuka implored him to initiate policies that will encourage banks to invest in human capital development and agriculture to reduce poverty.


http://234next.com/csp/cms/sites/Next/News/5407069-147/Soludo_gets_a_second_nod_.csp

please suggest someone better instead of just flacid postings.

These guys really love this Soludo guy. I love him too.

Sahara!
Well it appears the cabals could not succeed after all

nope its all part of the spin to claim the man is getting ahead of himself.

The cabals are still at it.

The last time I checked the Presidency is yet to announce an extension for Soludo.

mikeansy:

nope its all part of the spin to claim the man is getting ahead of himself.

The cabals are still at it.

The last time I checked the Presidency is yet to announce an extension for Soludo.

You are probably right.

Why did this make it to front page .It has not been confirmed yet.

SOLUDO? ok, we don hear!

I do disagree with Soludo and the govt on how foreign currency could be bought.
But he has done some good jobs on revamping the Nigerian banking industry.

spikedcylinder:

I guess he's going to continue servicing that mansion in the UK after all. . . .

I think we need to worry more about his job and not what he has in UK or not.
Do we know if he took out mortgage to get the house?

If this article is true, then this is the only positive decision Yar has made, he'll have shown he can defy those normadic morons he's sorrounded himself with!

I guess he's going to continue servicing that mansion in the UK after all. . . .

and how does that affect his job? the man has done well for himself.
although, he hasnt been able to do anything during this yaraduas govt. Im actually of the opinion that the man should leave this moronic govt.

Great news. no matter what he is accused of, he is a change agent and should continue.
@spikedcylinder if na u dey there, only God know wetin u for don acquire.

asha 80:

Why did this make it to front page .It has not been confirmed yet.

i asked myself same question.
This is only speculation from a mediocre 'news/media house' and the title is misleading

its good after all he has performed and has also done a very good job for the nigerian economy most especially the banking sector. A professor at 38 hmm, he deserves to continue. Big up 2my Igbo brovA. PROF. CHUKWUMA SOLUDO

if this is true, then yar' a-dunce have done one thing right inspite of been surrounded by dim-witt abokis

hope it's true!

dnt get who gets the job, so far interest rate is further reduced and govt starts looking in the direction of agriculture.

spikedcylinder:

Of course. Every kobo he has stolen must be ignored because he's done a fantastic job!

why all the hate.

For now, i reserve my comments.

brilliant decision. No?

what $2 million dollars can do to the wife of your oga

See all the hypocrites here shamelessly ignoring an alleged serious crime only because the man has 'done well'.

In that same vein, why do we even criticise Obasanjo for anything? Afterall, he brought GSM to Nigeria so he did well. . .

texazzpete:

See all the hypocrites here shamelessly ignoring an alleged serious crime only because the man has 'done well'.

In that same vein, why do we even criticise Obasanjo for anything? Afterall, he brought GSM to Nigeria so he did well. . .

Remember u only read this things on the pages of newspaper

They have not been proved by anyone.

Remember Nigerian media reports news according to the highest bidder.

Soludo back? hehehehehe, so so laughable matter.

somebody please close this damn thread it is false.

Well, as for me, i guess the guy deserves it may be just to accomplished what he started since 2004. Since inception, there is nothing on planet earth you can do to satisfy man that's why, in spite of the great impacts of Soludo people still critisized him.
Consequently, as long as the President approves Soludo's second Nod, there is nothing Nigerians can do besides Soludo could do better. Who knows?

mikeansy:

Remember u only read this things on the pages of newspaper

They have not been proved by anyone.

Remember Nigerian media reports news according to the highest bidder.

It will do you good to take time to read before responding. I was careful to say 'alleged' crime, and all i accuse you guys of doing is ignoring this fact.

Lexyoghene:

Well, as for me, i guess the guy deserves it may be just to accomplished what he started since 2004. Since inception, there is nothing on planet earth you can do to satisfy man that's why, in spite of the great impacts of Soludo people still critisized him.
Consequently, as long as the President approves Soludo's second Nod, there is nothing Nigerians can do besides Soludo could do better. Who knows?

That's where Nigerians get things wrong. No one wants to know if Nixon got some things right. All the world remembers is Watergate, and rightly so. If Soludo has been indicted for something illegal, why should past achievements shield him from justice?

Please take time to let that last sentence swirl though your head. Why should achievement shield anyone from justice?