There are reasons to believe that Sanusi Lamido Sanusi, group managing director and chief executive officer of First Bank of Nigeria Plc may succeed Chukwuma Soludo as the new governor of the Central Bank of Nigeria.

Information reaching THISDAY last night revealed that President Umaru Yar’Adua may have narrowed in on Sanusi, seasoned banker, economist and Islamic scholar, as Soludo’s replacement and has already offered him the job.

The decision by the president not to retain Soludo coincides with CBN’s intention to lift the ban it imposed in February this year on inter-bank foreign exchange trading, three months from now.

If the president does not change his mind or bow to pressure in the next few days, Sanusi’s name will be forwarded to the Senate for confirmation and will put paid to speculations over who should occupy the topmost job in the financial services sector. Soludo’s tenure expires next Friday.

Sanusi it was learnt has accepted the offer and intimated the board of First Bank.

Yar’Adua is expected to make public Sanusi’s appointment next Friday, May 29 to coincide with Democracy Day celebrations.
Sanusi, who effectively took over as managing director of First Bank from Jacob Moyo Ajekigbe on January 1, 2009, was the bank’s executive director in charge of Risk and Management Control.

In his short stint as MD, the incoming governor championed remarkable improvements in First Bank’s enterprise, risk and management control systems.

Before joining FBN, he was previously general manager at United Bank for Africa Plc (UBA), where he anchored the transformation of the bank’s Credit Risk Management Division into an Enterprise-Risk Management sector and spearheaded UBA’s Basel 2 focus by establishing the framework, policies, processes and systems necessary for compliance with the guidelines of the new capital accord.

Sanusi is the son of the late Emir of Kano, Alhaji Muhammad Sanusi who ruled from 1954 to 1963, and holds a degree in economics from the Ahmadu Bello University (ABU), Zaria and an M.Sc in economics from the same university.
He also has another degree in Sharia and Islamic Studies from the University of Khartoum, Sudan.

Analysts who spoke with THISDAY yesterday however said Sanusi’s major challenge would be to match or surpass Soludo’s accomplishments in the last five years.

Soludo is arguably the best governor ever to run the Central Bank. He championed far reaching sectoral reforms in the banking industry and has been credited with ushering a new phase for the Nigerian financial system.

Industry watchers believe that had Soludo not implemented the consolidation programme in 2005/2006, several banks would have failed under the current economic climate.

But his real forte as a Central Banker lie in his management of the economy where he brought his wealth of experience as a pre-eminent economist to achieve macro-economic stability for much of his tenure at the Bank.

Meanwhile, following an impromptu meeting of the Monetary Policy Committee (MPC) of the Central Bank, the Bank has agreed to remove restrictions on inter-bank foreign exchange trading in the next three months.

Soludo also said the CBN has granted Approvals in Principle (AIP) to 50 (Class A) Bureau De Changes (BDCs), which are expected to “sell at a retail rate of not more than 2 per cent above the CBN selling rate.” The list of the BDCs will be published today.

Soludo, who made these known to newsmen in Abuja, hinged these developments on the outlook for Nigeria’s foreign exchange market, which he said was stable.

“Trading in the inter-bank foreign exchange market will gradually resume during the next three months,” he said. “Banks will no longer be required to sell dollars to the Central Bank, and the CBN will participate in the inter-bank market, Soludo said.
Specifically, the Bank has decided to return to the liberalized foreign exchange market that obtained prior to the ban in the next three months.

Trading in the inter-bank foreign-exchange market was halted on February 10 following the decision by the Central Bank to tighten restrictions on currency transactions between commercial banks.

The move effectively shut down the inter-bank market and has been roundly criticised by currency dealers and international investors.

They were concerned that the CBN in its bid to support the naira, which lost about 20 percent of it value since November, had reversed all the gains made under the liberalised foreign exchange regime that had been in place for some years.
Crude, which accounts for 90 per cent of Nigeria’s export earnings, was selling at $61 a barrel yesterday from a record $147 a barrel in July 2008.

But Soludo said the CBN has achieved the purpose for which the ban was imposed and therefore is reviewing the series of controls it instituted in the last few months.

Soludo pointed out the committee noted that the exchange rate had remained stable at both the official and parallel rates for some months, though he admitted a wide premium still existed between the two rates.

“We have achieved stability in both the official and parallel markets. If you watch, over the last three months we have had stability, the problem has been the premium between official and parallel market rates.

As a first measure, Soludo said, the CBN has decided to increase the net foreign exchange open position (NOP) for banks from 1 to 2.5 per cent with immediate effect.

The NOP, he added, may be increased further at the end of June, this year.

He also said effective June 1, the Retail Dutch Auction System (RDAS) will be conducted twice weekly, adding that henceforth, banks are not “mandatory required” to sell to the CBN after five days, funds sourced from non-RDAS and non-oil export proceeds, and may use such funds for inter-bank transactions.

Soludo said government agencies and oil companies will have the discretion to sell foreign exchange at the inter-bank market or to the CBN, effective Monday, May 25, 2009.

He said the CBN has also decided to remove the requirement that banks transact foreign exchange at 1 per cent around the CBN rate, noting that, “the CBN will now participate in the inter-bank foreign exchange market at the prevailing rate.”
To keep the market constantly liquid, the CBN, will, from next week, sell about $60 million to BDCs weekly and they shall be expected to sell at retail of not more than 2 per cent above CBN’s selling rate.

In addition, in order to mop up excess liquidity from the economy, Soludo said the CBN will issue short-term instruments to be synchronised with the Debt Management Office’s (DMO’s) issuance of FGN bonds.

Soludo put the current figures for the nation’s external reserves at about $45 billion. He said that the rate of depletion as a result of the global crisis has slowed down.

“The foreign reserve is no longer depleting as before. It has remained fairly stable.

“We started the month at $45 billion and we are still at about $45 billion. That tells us that inflows and outflows are becoming a lit bit more stable,” he said.

http://www.thisdayonline.com/nview.php?id=144063

I don't know much about this guy, What do you guys think.

I predict a hopeless drop in naira

naijaking1:

I predict a hopeless drop in naira

why?

It's all about having confidence in the naira, the government, the export, and reserve.

naijaking1:

It's all about having confidence in the naira, the government, the export, and reserve.

and which of those would change based on the choice of a new cbn governor?

all

Congratulations to the new CBN Governor if the news is true

What I dont know is why it took this long  . . . . .or the speculation is not even over yet as an official announcement has not been made

The Choice of CBN Governor is an executive decision and what informs that decision is entirely up to the sitting President . . . it does not necessarily have to be based on performance.

My argument has always been, you dont need to undermine Soludo to appoint a new CBN Governor . . . . Soludo's record is there for all to see

I hope the new CBN Governor  surpasses Soludo's record . . . .and I believe for the sake of Nigeria Soludo will wish Sanusi the same.

However lets wait for Yar'adua's never coming confirmation.

But again this news may be part of the lobbying process . . . . to Pressure the President to remove the incumbent . . . . . to plant a news in Nigerian Newspaper is very easy . . . . none of the news is even citing any leaked Government Memo . . . . and we know that there are many news like this that have come out and yet amounted to nothing. . . . . so for me Soludo is still the CBN Governor and the Presidency is yet to announce his replacement.

naijaking1:

all

Then you obviously have no idea what you are talking about.
- The appointment of a new CBN governor will affect Nigeria's exportation?
- His appointment would affect the running of the government at federal or state level?
- Or his appointment will automatically deplete the already depleting foreign reserve?

Wont be surprising if your comments were simply because the guy is not your preferred choice.

You should resist the urge to type if you have no tangible contributions to make.

Who cares anyway - Yar adua's appointments are not based on merit.

biina:

Then you obviously have no idea what you are talking about.
- The appointment of a new CBN governor will affect Nigeria's exportation?
- His appointment would affect the running of the government at federal or state level?
- Or his appointment will automatically deplete the already depleting foreign reserve?
Wont be surprising if your comments were simply because the guy is not your preferred choice.
You should resist the urge to type if you have no tangible contributions to make.

Sorry, if you don't know how government can affect market and currency; I really don't have all the time to teach you at this time. However, watch out for naira value in the coming weeks if this news turns out to be true.
I'll revisit this issue again only if proven wrong, meanwhile peace

naijaking1:

Sorry, if you don't know how government can affect market and currency; I really don't have all the time to teach you at this time. However, watch out for naira value in the coming weeks if this news turns out to be true.
I'll revisit this issue again only if proven wrong, meanwhile peace

ROTFLMAO.  I advice you go and learn basic economics before you venture into the topic of currency valuation.
FYI the naira is sliding.

I personally think the greatest dis-service to the market is the fact that the President won't confirm once and for all who his choice is for CBN Governor and leaving it to dangerous speculation

and surely market behaviour reacts to government activities. At least we saw Jacob Zuma announce who will be managing treasury in South Africa in a bid to sustain confidence in the market . . . . Barrack Obama also did the same with Timothy Geithner

mikeansy:

I personally think the greatest dis-service to the market is the fact that the President won't confirm once and for all who his choice is for CBN Governor and leaving it to dangerous speculation

and surely market behaviour reacts to government activities. At least we saw Jacob Zuma announce who will be managing treasury in South Africa in a bid to sustain confidence in the market . . . . Barrack Obama also did the same with Timothy Geithner

yes but before they appointed those people they weere speculations!
If anything the newspapers in nigeria are teh ones causing all these unnecessary
'panic'

naijaking1:

Sorry, if you don't know how government can affect market and currency; I really don't have all the time to teach you at this time. However, watch out for naira value in the coming weeks if this news turns out to be true.
I'll revisit this issue again only if proven wrong, meanwhile peace

it's already devalued!

Wont be surprising if your comments were simply because the guy is not your preferred choice

.

gbam!

the man Sanusi sounds like he knows his onions  . . . . we wish him luck

http://www.cnbc.com/id/15840232?video=1130139163&play=1

http://www.cnbc.com/id/15840232?video=1130113436&play=1

I am only scared that he will be in support of the Spend! Spend!! Spend!!! agitation of the Yar'adua Government.

They should remember that it is because people put money away yesterday that is why we have money to spend today

However if the corruption in NNPC is addressed as well as illegal oil bunkering . . . . . Nigeria will be just fine

http://www.voanews.com/english/archive/2007-04/2007-04-23-voa3.cfm?moddate=2007-04-23

If appointed this will be interesting as the man is on record to have criticised Yar'adua's election and questioned the PDP's honesty

click on the link above, when on the page after clicking the link above click on the mp3 and you will hear Lamido Sanusi first hand


However I am certainly fine with this guy  . . . . . I like the Sound of Sanusi Lamido . . . . . I hope he does well as CBN Governor if appointed

Conclusion

I started this paper by saying that restructuring the Federation was not a simple task, and should be considered only as part of the process of nation-building. The message I have carried all my life is that all Nigerians have a right to maintain their diversity but this should only be on the basis of respect of the same rights for other Nigerians. No nation can be built on the platform of inequity, intolerance and selfishness.

I am Fulani. I am Muslim. But I am able to relate to every Nigerian as a fellow Nigerian and respect his ethnicity and his faith.  I am also convinced that we tend to exaggerate our differences for selfish ends and this applies even to matters of faith.

I have no doubt in my mind that the leadership of Nigerian politics in all parts of the country today, is in the main, reactionary, greedy, corrupt and bankrupt. Brought up in the era of tribal warlords, most political leaders are unable to think first and foremost like Nigerians. To this extent, any conference held today may be a waste of time.

But the audience may ask “Is there any hope for this Country”?  My answer is yes!  I rest my hope partly on personal experience. In every part of the country, I come across young Nigerians who do not agree with their elders. In the North, there is a new northerner, throwing off the yoke of irredentism, the toga of nepotism and the image of being a beneficiary of quota system. In the South-West, I find many young Yoruba citizens who frown at the rabid tribalism and provincialism of their leaders. In Igboland, we see young Igbos who regret the past and look forward to a brighter future. I have indeed received several letters from Nigerians, northerners and southerners, christians and muslims, encouraging me in the fight against the twin vices of religious intolerance and ethnic chauvinism.

But I rest my hope on a much deeper and profound base than these fleeting impressions. The hope for this Country is founded on the existence of the very problems we have just examined. The people of this Country have a long history of being together. Yet each group jealously guards its own identity, be it ethnic or religious. This is so only because our cultures, our religions, teach us core values within which we find full expression of our humanity. If only we would look, we would find that the values that make a good Fulani, Yoruba, Kanuri or Bini man; the values that make a good Christian and a good Muslim; are the same. If only we had in each part of this country, a leadership with the vision to recognize this, to harness this, to bring together good Yoruba, Hausa, Igbo, Ogoni and Angas men and women; good Christians and Muslims; to run the affairs of this country, we would find peace.

I rest my hope, finally on my generation. A generation of young, educated Nigerians, brought up in luxury, weaned by the traumatic experiences of the last two decades, and ready to take up the gauntlet, and ignite the hopes, for a renewed Nigeria. This is the generation much maligned by the present administration of septuagenarians. The generation discarded and treated like a pack of potential thieves. The only truly marginalized generation. This is the generation that will pick up the pieces and by the grace of Allah, leave those coming behind with a legacy far more progressive than the one we
inherited.
 

Thank you.

ISSUES IN RESTRUCTURING CORPORATE NIGERIA
 
 

BY SANUSI LAMIDO SANUSI
BEING A PAPER PRESENTED AT THE “NATIONAL CONFERENCE ON THE 1999 CONSTITUTION” JOINTLY ORGANISED BY THE NETWORK FOR JUSTICE AND THE VISION TRUST FOUNDATION, AT THE AREWA HOUSE, KADUNA FROM 11TH –12TH SEPTEMBER, 1999.

President Umaru Musa Yar'Adua has tipped his son-in-law, Governor Isa Yuguda of Bauchi State, as the next governor of the Central Bank of Nigeria. The current CBN governor, Prof. Chukwuma Soludo, will complete his tenure in May, this year.

The presidency is said to be buzzing with lobbyists for Soludo's seat. But LEADERSHIP SUNDAY learnt that Yar'Adua is favourably disposed to anointing his son-in-law Yuguda as the next CBN chief.

Also, Tanimu Yakubu, currently the president's chief economic adviser, may be made chairman of the Power Holding Company of Nigeria (PHCN). Yakubu would still retain his current position, if he eventually becomes the PHCN boss. That becomes a combined honour for him.

A curious aspect, however, is that Rilwan Babalola, minister of power, who until his appointment as minister was Yakubu's special assistant, should have been chairman of PHCN, being the supervising minister.

Kola Adesina, who is a director with Sahara Oil and Gas Limited and a close friend of Yar'Adua's, has been appointed vice chairman of PHCN.

Yuguda is currently the arrow head of Yar'Adua's major economic think-tank - the advisory committee on the global economic meltdown.

Yuguda was a banker of note before going into politics. He was the MD/CEO of Inland Bank, substantially owned by Bauchi State. The bank eventually became First Inland Bank after consolidation. It is now known as Finbank. From there, he moved on to NAL Bank as the managing director also. During Obasanjo's first term, Yuguda was the minister of aviation.

Relevant Links
West Africa
Nigeria
Banking
Business
He became governor of Bauchi State in 2007, after a bitter political battle between him and the former governor of the state, Ahmed Muazu. Bauchi was hailed as one of the few places where the 2007 election was viewed as transparent; consequently, Yuguda triumphed over the PDP and formed an ANPP government. This was seen as a feat, considering that the PDP machinery was a formidable force to overcome in many parts of the country.

Since he became governor, Yuguda has been enmeshed in a battle of wits with his predecessor. He recently married the president's daughter in a move that, many believe, was intended to checkmate his opponents. Plans are already under way for him to join the ruling PDP. In a recent interview, he said that he was only forced to leave the PDP by the party's former helmsman, Ahmadu Ali, and other gladiators. Currently, Yuguda is dealing with the religious crisis that rocked Bauchi last week. He has since blamed his political opponents for the crisis.

http://allafrica.com/stories/200903021313.html

Folks chilll

Leadership also once speculated that Yar'adua had tipped Yuguda for CBN Governor

So why is this news more authentic compared to the previous one?

My sense is that some folks are just testing the waters.

New face, new name, same result = nothing for the poor man or woman.

biina:

ROTFLMAO.  I advice you go and learn basic economics before you venture into the topic of currency valuation.
FYI the naira is sliding.

A government can indeed have an effect on the economy and value of a country's currency. It is easy to throw around economic jargons around but at the end of the day when brought down to its basics the issue is investor confidence. No need to take my word for it, wall street is a perfect example and testament to the shaky foundations the financial system is built on, a foundation which cannot be completely overhauled even with reforms. During the period of uncertainty when the credit crunch was about a year or so old and banks were failing left and right, a lot of banks collapsed based on mere speculation, speculation which is what at the end of the day a huge chunk of investor confidence and the financial market is based on in the first place. You might think the economics and finance of text books apply all the time but honestly speaking you might be shocked at how paper thin the foundations actually are.

How can such apply to Nigeria with regards to @naijaking's postulation? Continuity in government and hence continuity in policies and direction is an issue in african countries. Nigeria has very weak institutions which means whenever a new man gets into a post, a lot of the times there is hardly ever any continuity in economic policies, these affects markets quite easily due to the volatile foundations I highlighted earlier. I personally believe Yar Adua being president and the complete headlessness and lack of direction of his government has strongly affected the economic situation and even the value of the Naira. Some people might argue that the Naira falling is simply a result of the credit crunch but I beg to disagree. Nigeria has a very huge market and investors can get HUGE returns, just ask the guys who run the Palms shopping Mall. So why isn't buiness booming then and why aren't investors rushing in? The issue is RISK. It is a potentially good market with regards to return in investment but it is also very highrisk due to some of the issues I highlighted (lack of institutions, etc) and other factors ranging from infrastructure, insecurity, etc. Things investors won't mind overlooking and simply including as extra costs if there was investor confidence in the first place.

heeeeeeeeeemmmm!! Well, Soludo has done his best and the record is there for us to see. Wish him well.


Sanusi is a seasoned banker who is also capable. Well, the most important thing is for the country to move forward.

Thats my prayer.

Sky Blue:

A government can indeed have an effect on the economy and value of a country's currency. It is easy to throw around economic jargons around but at the end of the day when brought down to its basics the issue is investor confidence. No need to take my word for it, wall street is a perfect example and testament to the shaky foundations the financial system is built on, a foundation which cannot be completely overhauled even with reforms. During the period of uncertainty when the credit crunch was about a year or so old and banks were failing left and right, a lot of banks collapsed based on mere speculation, speculation which is what at the end of the day a huge chunk of investor confidence and the financial market is based on in the first place. You might think the economics and finance of text books apply all the time but honestly speaking you might be shocked at how paper thin the foundations actually are.

How can such apply to Nigeria with regards to @naijaking's postulation? Continuity in government and hence continuity in policies and direction is an issue in african countries. Nigeria has very weak institutions which means whenever a new man gets into a post, a lot of the times there is hardly ever any continuity in economic policies, these affects markets quite easily due to the volatile foundations I highlighted earlier. I personally believe Yar Adua being president and the complete headlessness and lack of direction of his government has strongly affected the economic situation and even the value of the Naira. Some people might argue that the Naira falling is simply a result of the credit crunch but I beg to disagree. Nigeria has a very huge market and investors can get HUGE returns, just ask the guys who run the Palms shopping Mall. So why isn't buiness booming then and why aren't investors rushing in? The issue is RISK. It is a potentially good market with regards to return in investment but it is also very highrisk due to some of the issues I highlighted (lack of institutions, etc) and other factors ranging from infrastructure, insecurity, etc. Things investors won't mind overlooking and simply including as extra costs if there was investor confidence in the first place.

At the core, the value of a currency is simply a case of demand and supply. How much do you export and are paid in forex for it, vs how much do you import and need to pay for it in forex.
The issue is not being addressed in a vacuum, else even the contribution of the average street hawker could be said to influence the exchange rate.
I advise you to check historical data on the value of the naira, and correlate it to the price and sale of crude oil.

I personally believe Yar Adua being president and the complete headlessness and lack of direction of his government has strongly affected the economic situation and even the value of the Naira.

Umm i don't think so.

biina:

At the core, the value of a currency is simply a case of demand and supply. How much do you export and are paid in forex for it, vs how much do you import and need to pay for it in forex.
The issue is not being addressed in a vacuum, else even the contribution of the average street hawker could be said to influence the exchange rate.
I advise you to check historical data on the value of the naira, and correlate it to the price and sale of crude oil.

And I think you might be failing to see the issue in the wider spectrum others might see it. There have been many project that seem to have gone into limbo since Yar Adua came into power, projects either suspended, uncompleted, not running at optimum or simply abandoned. The power issue remains a simple example. What happened to the reported steel mills which would have ensured we not only provide steel for domestic consumption but also produce some for exports. The Lagos port is more efficient than it used to be thanks to restructuring that occured during the last administration due to a change in the 'ownership' and hence a change in leadership of the group running the port (something they are also trying to achieve in Port Harcourt). The Lagos port was so inefficient before that it used to take at least two weeks for ships to dock and offload goods, a situation that caused a lot of importers to use ports outside the country to off-load goods and then transport the goods via roads into lagos from benin. As a result of the inefficiency, the rate at which goods were traded was affected significantly to put it mildly. Just think about it for a sec, Lagos is the main port in the country through which mosts of the goods brought into the countmry comes through.

I won't continue to bore you with things you already know, but as you can see, considering the federal government has put its hands in so many pies and was therefore needed for something as simple as port restructuring, how on earth can you then compare the influence a common street hawker would have with things like efficiency in trade or ratio of exports to imports, with the influence the federal government would have on similiar areas?? Doesn't the federal government run NNPC? We could start with something as simple as that before branching into the issue of how much crude oil is sold, go into the whole issue of Nigerians spending billions importing fuel from other countries because of the state of refineries in the country. Would these issues affect foreign exchange?

Economic activity is governed by the institutions and industries of a country, such factors the Nigerian government has had a history of controlling even with the long history of innefficieny and corruption that has plagued such a decision.

@Sky Blue
Ol boy you de try-o!
Kudos for your patients trying to teach this biina person some basic economic theories. I tried that once in the Business section, and then resolved that there is no way you can go through all aspects of the subject for an ignoramus on the pages of N/L.

for thos who argue that political activities and appointments have no impact on market behavious . . . .this is quoting Financial Times

The question over who might take over at the Central Bank of Nigeria has been among the biggest uncertainties facing Nigeria’s financial sector, compounding concerns linked to last year’s collapse in the value of the local stock market.

http://www.ft.com/cms/s/0/d6440054-488b-11de-8870-00144feabdc0.html

mikeansy:

for thos who argue that political activities and appointments have no impact on market behavious . . . .this is quoting Financial Times

http://www.ft.com/cms/s/0/d6440054-488b-11de-8870-00144feabdc0.html

Thank you Mikeansy and Sky Blue, the FT article is excatly what I could have written for biina, but just didn't have time

Sky Blue:

And I think you might be failing to see the issue in the wider spectrum others might see it. There have been many project that seem to have gone into limbo since Yar Adua came into power, projects either suspended, uncompleted, not running at optimum or simply abandoned. The power issue remains a simple example. What happened to the reported steel mills which would have ensured we not only provide steel for domestic consumption but also produce some for exports. The Lagos port is more efficient than it used to be thanks to restructuring that occured during the last administration due to a change in the 'ownership' and hence a change in leadership of the group running the port (something they are also trying to achieve in Port Harcourt). The Lagos port was so inefficient before that it used to take at least two weeks for ships to dock and offload goods, a situation that caused a lot of importers to use ports outside the country to off-load goods and then transport the goods via roads into lagos from benin. As a result of the inefficiency, the rate at which goods were traded was affected significantly to put it mildly. Just think about it for a sec, Lagos is the main port in the country through which mosts of the goods brought into the countmry comes through.

I won't continue to bore you with things you already know, but as you can see, considering the federal government has put its hands in so many pies and was therefore needed for something as simple as port restructuring, how on earth can you then compare the influence a common street hawker would have with things like efficiency in trade or ratio of exports to imports, with the influence the federal government would have on similiar areas?? Doesn't the federal government run NNPC? We could start with something as simple as that before branching into the issue of how much crude oil is sold, go into the whole issue of Nigerians spending billions importing fuel from other countries because of the state of refineries in the country. Would these issues affect foreign exchange?

Economic activity is governed by the institutions and industries of a country, such factors the Nigerian government has had a history of controlling even with the long history of innefficieny and corruption that has plagued such a decision.

I gave the example of the street hawker to show how unreasonable an argument can get when one start to apply butterfly effect principles. You should go back to the original post by naijaking1 (in which he predicted an hopeless drop in the naira simply on the appointment of the CBN governor) before you degenerate this into a discussion on 6 degrees of separation.

Nigeria is a one dimensional export country (with crude oil being our primary source of forex), with heavy importation (not surprising given the poor state of our economy), resulting in huge trade deficit and a weakened currency. This is the primary factor affecting the value of the naira (but if you disagree I am all ears). The policy of the CBN and other actions by the government (or its parastatals) bring secondary effects.

For example:

1. The unrest in the Niger delta will likely result in reduced oil production and export which will lead to less forex income for the nation and will likely weaken the naira. Should I then conclude that MEND will devalue the naira? 
2. The incumbent CBN governor moved from the old DAS, where the banks could only buy forex from the CBN based on expressed demands and prior cash commitment of their customers, to a more liberlized market where banks are now allowed to purchase foreign exchange based on their speculative estimates of their customers’ foreign exchange demands. This has likely led to an increase in the demand for forex and further weakened the Naira. This is a more direct effect as compared to the previous case.

We can go on analyzing how the actions in a part of the government, private sector, or foreign government, affects the value of the naira, but the truth is that the appointment of a CBN governor is far from the war front in its effect.

As to the FT article, I really don't see the relevance to the discussion, as it did not say anything as to the direct effect (positive or negative) of the appointment on the currency.

To predict the fall of the Naira simply on the appointment of a CBN governor is erroneous.

Biina

Collapse of the stock market . . . .does not sound positive to me

The FT article supports my argument that uncertainties in who the next CBN Governor will be which dragged on for so long was not healthy to our economy.

mikeansy:

Biina

Collapse of the stock market . . . .does not sound positive to me

The FT article supports my argument that uncertainties in who the next CBN Governor will be which dragged on for so long was not healthy to our economy.

I have never said the indecision of the FG on the appointment was good for the economy. I agree with you that the move(or lack of) on the issue is bad for the economy. You had made a similar comment in another thread, and I cant remember any sensible person disagreeing with you.

The question is how would the appointment of Sanusi as CBN governor collapse the naira as predicted by naijaking1?

As to the article that you referenced and the excerpted quote:

The question over who might take over at the Central Bank of Nigeria has been among the biggest uncertainties facing Nigeria’s financial sector, compounding concerns linked to last year’s collapse in the value of the local stock market.

Contrary to naijaking1's view that it buttresses his position, it only points to the lack of appointment being a big uncertainty in the market, which is far from collapsing the market, and well off from the appointment of sanusi collapsing the market, which is quite a distance from his appointment collapsing the naira.

I simply disagree that the appointment of sanusi will result in a free fall of the naira.

I simply disagree that the appointment of sanusi will result in a free fall of the naira

There is no reason to believe that Sanusi's appointment or anybody for that matter will surely result in the free fall of Naira

I personally think Sanusi is qualified enough for the post although he has only been the head of FBN for a very short time

I think anybody who love our country must wish him well . . . .it is in nobody's interest for Sanusi to fail

mikeansy:

There is no reason to believe that Sanusi's appointment or anybody for that matter will surely result in the free fall of Naira

I personally think Sanusi is qualified enough for the post although he has only been the head of FBN for a very short time

I think anybody who love our country must wish him well . . . .it is in nobody's interest for Sanusi to fail

please tell that to naijaking1, who seems convinced that he has seen the future that others are oblivious to.