I just read today's papers and I came across the write-up by Funke Aboyade regarding the N100 million naira donation made by the Central Bank of Nigeria to the Kano State government following the unfortunate terror attacks in that city of recent. Although I have not read the original article, I gleaned from the response published today that Miss (Mrs?) Aboyade appeared to have defended the donation as acceptable under the CSR remit of the CBN. Let me say straight away that the CBN has no such remit.

Nigeria is quite a lawless society - and when grave legal wrongs occur, in many instances they tend to be swept under the carpet in a hail of sentiment. This will not help us as a society and it will also set very dangerous precedents.

1. The CBN has no statutory powers to make donations. Please refer to Section 1 & 2 of the CBN (Establishment) Act. The Act is very clear on the role and function of the Central Bank. Even the Incidental Powers granted the bank under Section 32 of the Act very specifically limit such to "such things as are incidental to or consequential upon the exercise of its power or the discharge of its duties under the Act." So it is very clear that any incidental actions that the CBN takes must be incidental to or consequential upon its very specific duties as stated under the Act. It therefore has no "random" powers beyond that stated. The provisions of Section 162 (10) of the Constitution of the Federal Republic should also be of interest to you in this regard. It defines what receipts of funds means - and the preceding sub-sections state how ALL funds of the Federation should be treated.

2. The CBN is banker to the Government: and as such although it is independent it cannot usurp the functions of the Government. It must be guided by proper laws on appropriation of funds in exercising its functions. In this instance the Government has agencies such as the Nigeria Emergency Management Agency whose proper remit relief efforts of the Kano sort should be. The CBN cannot unilaterally impose its funds on an activity for which there is a statutorily responsible agency in existence - an agency which has a budget already dedicated for such purposes. Such is both illegal and mindlessly irresponsible. It is also representative of anarchy in government. You might soon find the CBN taking over the functions of other government agencies.

3. It is a gross abuse of Administrative Powers. The role of a Central Bank is well defined. It is NOT a charity and it is very dangerous as a precedent to permit it to go about making donations. Who limits the quantum of the donations? Does the CBN have a budget for donations, or is such decided as the spirit directs? What would you say if the Governor now makes it a practice to issue such donations every time we have the now-very-often crisis situations in all nooks and crannies of the country. What criteria will be used to determine which crisis will get donations from the CBN and which will not? Will it be as the spirit directs again? If there are accidents or other mishaps such as plane crashes, armed robberies, militant attacks, etc, should the CBN rush in to donate monies to all such incidents? Is the CBN a parallel government? And haven set the precedent, why should the CBN not continue to do so? Where are the limits? This is a VERY dangerous precedent indeed.

4. It is a mis-application of the principle of Corporate Social Responsibility. I stand to be corrected that CSR does not apply to a statutory body of statutory functions such as the CBN - because its functions are strictly regulated by law. If you think it does, then you should be equally fine with every other public statutory institution making similar donations as "part of CSR". See where that will get us!

I state to you in very clear terms that CSR is for business-driven corporations and not for statutory institutions such as the CBN - Read here –

http://en.wikipedia.org/wiki/Corporate_social_responsibility

- and as such it is absolutely inappropriate for either Mrs Aboyade or the CBN Governor to use that term as a defence for the donation. It simply means that neither Mrs Aboyade nor Sanusi know what CSR is, and Sanusi is clearly ignorant of its meaning, context, purpose, relevance to business strategy, and of the sort of organizations it applies to.

You see, the problem is that the Governor of the Central Bank of Nigeria happens to be a very impulsive man. I am not in the school of Nigerians who regards him as a good choice for the role. He would fare better as Head of the EFCC or some other such fire-brigade organization. This is because Central Banking requires somber thought, extensive reflection and a measured approach, all of which Sanusi is terribly, astonishingly and tragically lacking in.

I have cried and cried about the brazen illegality of the issuance of N620 billion to the failing banks at the time that he took that measure. That patently illegal measure was allowed to stand - and again, it is a most dangerous precedent - for in one fell swoop the CBN Governor arrogated to himself the right to create liquid assets of the Federation - and unilaterally issue same assets to whomsoever he pleases. And this was done prior to the establishment of AMCON. This is unheard of anywhere in the world. As you are aware, similar bail-out exercises were carried out by almost every Western Government in the same period. There is NOT ONE SINGLE COUNTRY where it was done without the prior and explicit imprimatur of Parliament - EXCEPT Nigeria. This is naturally so, because Parliament holds the powers to appropriate funds. There is nothing in the CBN Act that supersedes or overrides this. The specific provision of the supreme law - the constitution - is that ALL MONIES derived (howsoever) by Nigeria proceed into the Federation Account and are properly appropriated by Parliament or by applicable laws. Sanusi therefore could not seize parliamentary prerogative as he did. But this is Nigeria, we have air-headed parliamentarians - and they could not protect their lawful turf - but at all events, such must not be permitted to happen again.

Principally, it was a bad precedent - and in the same way, this spree of donations is also a mis-advised and very bad precedent as well. Mrs Aboyade would do well not to encourage Sanusi Lamido Sanusi along the path of blatant disregard for extant laws - a path which he has so far been fervently devoted to.

I should add, however Mrs Aboyade wrote in her column today that she was playing the Devil's advocate and attempting to instigate debate. I sincerely hope that is the case, and of course, if that is the case, I happily reserve my comments above. But I must add that playing the devils advocate on such a matter has its pitfalls - it could very well encourage SLS in such acts of illegality.

2. The CBN is banker to the Government: and as such although it is independent it cannot usurp the functions of the Government. It must be guided by proper laws on appropriation of funds in exercising its functions. In this instance the Government has agencies such as the Nigeria Emergency Management Agency whose proper remit relief efforts of the Kano sort should be. The CBN cannot unilaterally impose its funds on an activity for which there is a statutorily responsible agency in existence - an agency which has a budget already dedicated for such purposes. Such is both illegal and mindlessly irresponsible. It is also representative of anarchy in government. You might soon find the CBN taking over the functions of other government agencies.

Word.

[size=3pt]Ess, remember nefa to call Beaf's name in your stup!d moments, or you get an avalanche.[/size]
There is very little to be expected from Sanusi. A man who claims that boko haram is due to the core-North not receiving 13% awuf derivation from oil; one who donates CBN money as he pleases; and one who is a strict sharia lord by day and sugar daddy by night:

[img]https://www.nairaland.com/download/660265[/img]
Irresponsibility defined.

There really should be a Legal Section in Nairaland. I've wondered about that myself.
MODS please look into it if you can.
Thanks

Its is quite easy for inadequate and attention seeking lawyers to convince the layman that CBN does not have the authoriztion to do one thing or the other. Real lawyers who know their stuff will go to the courts for remedy. The lawyer referenced in the initial post should file a lawsuit if he is sure of him/herself. A cursory reading of his submission shows that he is as sopisticated as a failing 1st year law student in his analysis. olodo

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

^^^ No need to seek attention bro, I only gave it that title to show that I intended my piece to be from a legal point of view mainly. If the title offends you, no wahala, I can make it simply - "A response to". I am not seeking anybody's attendtion. I dont need it.

It would be better if you simply present contrary points instead of insulting me, don't you think?

PS: Title amended. I want no insults. I no dey find work. Thanks.

ndu_chucks: Its is quite easy for inadequate and attention seeking lawyers to convince the layman that CBN does not have the authoriztion to do one thing or the other. Real lawyers who know their stuff will go to the courts for remedy. The lawyer referenced in the initial post should file a lawsuit if he is sure of him/herself. A cursory reading of his submission shows that he is as sopisticated as a failing 1st year law student in his analysis. olodo

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

ndu_chucks: Its is quite easy for inadequate and attention seeking lawyers to convince the layman that CBN does not have the authoriztion to do one thing or the other. Real lawyers who know their stuff will go to the courts for remedy. The lawyer referenced in the initial post should file a lawsuit if he is sure of him/herself. A cursory reading of his submission shows that he is as sopisticated as a failing 1st year law student in his analysis. olodo

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

^^ Make rebuttals of the points. That's the proper way to discuss issues.

Deep Sight:
^^^ No need to seek attention bro, I only gave it that title to show that I intended my piece to be from a legal point of view mainly. If the title offends you, no wahala, I can make it simply - "A response to". I am not seeking anybody's attendtion. I dont need it.

It would be better if you simply present contrary points instead of insulting me, don't you think?

PS: Title amended. I want no insults. I no dey find work. Thanks.

You need to have a thicker skin buddy, you disappointed me by modifying your title because of a tiny criticism. I will not employ legalese in showing you that there is nothing illegal about Sanusi's donation. I will just list some of CBN's normal activities in the area of social responsibility and point out that no lawyer has seen it fit to challenge these activities to date:


The CBN continues to perform its corporate social responsibility functions by promoting knowledge through
seminars, workshops, etc, which were of strategic national interest as well as providing financial assistance
to organisations/activities. These include:
• The Nigerian Economic Society (NES);
• The Nigerian Statistical Association (NSA;
• Christ the Good Shepherd Academy of Science Programme on “Train Indigent Children and Dropouts”;
• Nigerian Union of Journalists (NUJ) hosting of the African Regional Meeting of the International
Federation of Journalists;
• Women in Banking, Finance and Investment in Nigeria, hosting of its 2007 National Conference;
• The Computer Professional Registration Council of Nigeria Annual Assembly;
• The Clement Isong Foundation; and
• The Niger Delta University Endowment Fund.

See more here ===> http://www.cenbank.org/CBNCommunity/Community.asp

Additionally the CBN has provided hundreds of millions of naira in grants to support its Capacity Building Programmes as follows:

• Nigerian Universities Capacity Building Programmes
• Other Capacity Building Programmes
• Collaborative research with agencies
• Development Finance agencies
• National Assembly
• Economic and Financial Crimes Commission (EFCC)
• Investment and Securities Tribunal (IST)
• Financial Institutions Training Centre (FITC)
• Annual Seminar for Finance Correspondents and Business Editors
• Professional Institutions

Why then can the said N100million donation to Kano be wrong if donations to the above programs are fine and legal. I think common sense trumps legalese here.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

Sanusi is a clown. Let him go ahead and take the whole fund in CBN vault and give his BH brothers, after all, he has been defending their action while funding the sect by proxy.

Why won't he donate to kano state even if such donation is illegal, may be he is planning to run for the govt house in the next election or take over from the emir when the time comes. "this is an act of terrorism, in fact SANUSI IS A TERRORIST" Hon. Lawan.

The CBN continues to perform its corporate social responsibility functions by promoting knowledge through
seminars, workshops, etc, which were of strategic national interest as well as providing financial assistance
to organisations/activities. These include:
• The Nigerian Economic Society (NES);
• The Nigerian Statistical Association (NSA;
• Christ the Good Shepherd Academy of Science Programme on “Train Indigent Children and Dropouts”;
• Nigerian Union of Journalists (NUJ) hosting of the African Regional Meeting of the International
Federation of Journalists;
• Women in Banking, Finance and Investment in Nigeria, hosting of its 2007 National Conference;
• The Computer Professional Registration Council of Nigeria Annual Assembly;
• The Clement Isong Foundation; and
• The Niger Delta University Endowment Fund.

See more here ===> http://www.cenbank.org/CBNCommunity/Community.asp

Additionally the CBN has provided hundreds of millions of naira in grants to support its Capacity Building Programmes as follows:

• Nigerian Universities Capacity Building Programmes
• Other Capacity Building Programmes
• Collaborative research with agencies
• Development Finance agencies
• National Assembly
• Economic and Financial Crimes Commission (EFCC)
• Investment and Securities Tribunal (IST)
• Financial Institutions Training Centre (FITC)
• Annual Seminar for Finance Correspondents and Business Editors
• Professional Institutions

Why then can the said N100million donation to Kano be wrong if donations to the above programs are fine and legal. I think common sense trumps legalese here.


I find your argument irresponsible at best. If you have any intelligence at all, you must know that these cases are different. CBN is not legally permitted to be making charitable donations. It is not their statutory function. There are other agencies of government that is designed to do this. Even funding of private organisations as they have been doing is wrong and illegal. the Textile loan intervention ought to be handled by the Federal Ministry of Finance or disbursed to the commercial banks. The same with the aviation intervention funds. Sanusi is commercializing CBN and you must understand (that is if you are smart enough to do so) that public bodies are not best placed to make donations. CSR is usually for private and commercial bodies. The Govt can make donations through executive pronouncements but certainly not through a body like a country's central bank.

Justifying this shows how shallow we are. This is the same reason we had to get justice on the Ibori case outside the shores of Nigeria. People like you would have carried placards justifying why Ibori is not a thief.

Someone should please upload this piece in a National dailies. Let it brighten some people who are still ignorant about this issue.
Thanks

dancewith: The CBN continues to perform its corporate social responsibility functions by promoting knowledge through
seminars, workshops, etc, which were of strategic national interest as well as providing financial assistance
to organisations/activities. These include:
• The Nigerian Economic Society (NES);
• The Nigerian Statistical Association (NSA;
• Christ the Good Shepherd Academy of Science Programme on “Train Indigent Children and Dropouts”;
• Nigerian Union of Journalists (NUJ) hosting of the African Regional Meeting of the International
Federation of Journalists;
• Women in Banking, Finance and Investment in Nigeria, hosting of its 2007 National Conference;
• The Computer Professional Registration Council of Nigeria Annual Assembly;
• The Clement Isong Foundation; and
• The Niger Delta University Endowment Fund.

See more here ===> http://www.cenbank.org/CBNCommunity/Community.asp

Additionally the CBN has provided hundreds of millions of naira in grants to support its Capacity Building Programmes as follows:

• Nigerian Universities Capacity Building Programmes
• Other Capacity Building Programmes
• Collaborative research with agencies
• Development Finance agencies
• National Assembly
• Economic and Financial Crimes Commission (EFCC)
• Investment and Securities Tribunal (IST)
• Financial Institutions Training Centre (FITC)
• Annual Seminar for Finance Correspondents and Business Editors
• Professional Institutions

Why then can the said N100million donation to Kano be wrong if donations to the above programs are fine and legal. I think common sense trumps legalese here.


I find your argument irresponsible at best. If you have any intelligence at all, you must know that these cases are different. CBN is not legally permitted to be making charitable donations. It is not their statutory function. There are other agencies of government that is designed to do this. Even funding of private organisations as they have been doing is wrong and illegal. the Textile loan intervention ought to be handled by the Federal Ministry of Finance or disbursed to the commercial banks. The same with the aviation intervention funds. Sanusi is commercializing CBN and you must understand (that is if you are smart enough to do so) that public bodies are not best placed to make donations. CSR is usually for private and commercial bodies. The Govt can make donations through executive pronouncements but certainly not through a body like a country's central bank.

Justifying this shows how shallow we are. This is the same reason we had to get justice on the Ibori case outside the shores of Nigeria. People like you would have carried placards justifying why Ibori is not a thief.

dancewith: The CBN continues to perform its corporate social responsibility functions by promoting knowledge through
seminars, workshops, etc, which were of strategic national interest as well as providing financial assistance
to organisations/activities. These include:
• The Nigerian Economic Society (NES);
• The Nigerian Statistical Association (NSA;
• Christ the Good Shepherd Academy of Science Programme on “Train Indigent Children and Dropouts”;
• Nigerian Union of Journalists (NUJ) hosting of the African Regional Meeting of the International
Federation of Journalists;
• Women in Banking, Finance and Investment in Nigeria, hosting of its 2007 National Conference;
• The Computer Professional Registration Council of Nigeria Annual Assembly;
• The Clement Isong Foundation; and
• The Niger Delta University Endowment Fund.

See more here ===> http://www.cenbank.org/CBNCommunity/Community.asp

Additionally the CBN has provided hundreds of millions of naira in grants to support its Capacity Building Programmes as follows:

• Nigerian Universities Capacity Building Programmes
• Other Capacity Building Programmes
• Collaborative research with agencies
• Development Finance agencies
• National Assembly
• Economic and Financial Crimes Commission (EFCC)
• Investment and Securities Tribunal (IST)
• Financial Institutions Training Centre (FITC)
• Annual Seminar for Finance Correspondents and Business Editors
• Professional Institutions

Why then can the said N100million donation to Kano be wrong if donations to the above programs are fine and legal. I think common sense trumps legalese here.


I find your argument irresponsible at best. If you have any intelligence at all, you must know that these cases are different. CBN is not legally permitted to be making charitable donations. It is not their statutory function. There are other agencies of government that is designed to do this. Even funding of private organisations as they have been doing is wrong and illegal. the Textile loan intervention ought to be handled by the Federal Ministry of Finance or disbursed to the commercial banks. The same with the aviation intervention funds. Sanusi is commercializing CBN and you must understand (that is if you are smart enough to do so) that public bodies are not best placed to make donations. CSR is usually for private and commercial bodies. The Govt can make donations through executive pronouncements but certainly not through a body like a country's central bank.

Justifying this shows how shallow we are. This is the same reason we had to get justice on the Ibori case outside the shores of Nigeria. People like you would have carried placards justifying why Ibori is not a thief.

dancewith: The CBN continues to perform its corporate social responsibility functions by promoting knowledge through
seminars, workshops, etc, which were of strategic national interest as well as providing financial assistance
to organisations/activities. These include:
• The Nigerian Economic Society (NES);
• The Nigerian Statistical Association (NSA;
• Christ the Good Shepherd Academy of Science Programme on “Train Indigent Children and Dropouts”;
• Nigerian Union of Journalists (NUJ) hosting of the African Regional Meeting of the International
Federation of Journalists;
• Women in Banking, Finance and Investment in Nigeria, hosting of its 2007 National Conference;
• The Computer Professional Registration Council of Nigeria Annual Assembly;
• The Clement Isong Foundation; and
• The Niger Delta University Endowment Fund.

See more here ===> http://www.cenbank.org/CBNCommunity/Community.asp

Additionally the CBN has provided hundreds of millions of naira in grants to support its Capacity Building Programmes as follows:

• Nigerian Universities Capacity Building Programmes
• Other Capacity Building Programmes
• Collaborative research with agencies
• Development Finance agencies
• National Assembly
• Economic and Financial Crimes Commission (EFCC)
• Investment and Securities Tribunal (IST)
• Financial Institutions Training Centre (FITC)
• Annual Seminar for Finance Correspondents and Business Editors
• Professional Institutions

Why then can the said N100million donation to Kano be wrong if donations to the above programs are fine and legal. I think common sense trumps legalese here.


I find your argument irresponsible at best. If you have any intelligence at all, you must know that these cases are different. CBN is not legally permitted to be making charitable donations. It is not their statutory function. There are other agencies of government that is designed to do this. Even funding of private organisations as they have been doing is wrong and illegal. the Textile loan intervention ought to be handled by the Federal Ministry of Finance or disbursed to the commercial banks. The same with the aviation intervention funds. Sanusi is commercializing CBN and you must understand (that is if you are smart enough to do so) that public bodies are not best placed to make donations. CSR is usually for private and commercial bodies. The Govt can make donations through executive pronouncements but certainly not through a body like a country's central bank.

Justifying this shows how shallow we are. This is the same reason we had to get justice on the Ibori case outside the shores of Nigeria. People like you would have carried placards justifying why Ibori is not a thief.

Well Ndu Chuks, what say you...this guy doesn't look or sound like a failing 1st year law student to me. Please go legalese or something, lets see if your first counter has any grain.

Deep Sight:
I should add, however Mrs Aboyade wrote in her column today that she was playing the Devil's advocate and attempting to instigate debate. I sincerely hope that is the case, and of course, if that is the case, I happily reserve my comments above. But I must add that playing the devils advocate on such a matter has its pitfalls - it could very well encourage SLS in such acts of illegality.

What ever she claims she was doing, she is still retarded!

What buffoons like her don't realise is that there is no devil's advocacy in illegal activities. What she did is a typical outcome of when foools attempt to show they are intellectuals. They usually end up trying to foolishly apply funky philosophies and platitudes.

When Sanusi bailed out bank and sacked some thieving bank MDs, the usual suspects were screaming that he overstepped his bounds. A lawsuit challenging CBN ans Sanusi was filed and we all know that CBN won that case. Sanusi's donation to Kano state was essentially a grant, the bulk of which is to be used to rebuild the police stations and other government offices destroyed by BH.

As I stated earlier, the CBN has donated 100s of millions in grants to several bodies and even individuals. If you call the Kano donation charity, then the other grants will also be classified as charitable donations. Once again, if you people as sure of yourselves, file a lawsuit and see how far you'll get. My guess is that the lawsuit will be thrown out promptly. There is more to litigation than juvenile analysis and emotionalism which are race based and tribal based at their cores.

@dancewith, what is irresponsible in your submission is the comparison of the CBN grant with Ibori's feloneous to thieving actions. Ibori is a criminal!

dancewith:

I find your argument irresponsible at best. If you have any intelligence at all, you must know that these cases are different. CBN is not legally permitted to be making charitable donations. It is not their statutory function. There are other agencies of government that is designed to do this. Even funding of private organisations as they have been doing is wrong and illegal. the Textile loan intervention ought to be handled by the Federal Ministry of Finance or disbursed to the commercial banks. The same with the aviation intervention funds. Sanusi is commercializing CBN and you must understand (that is if you are smart enough to do so) that public bodies are not best placed to make donations. CSR is usually for private and commercial bodies. The Govt can make donations through executive pronouncements but certainly not through a body like a country's central bank.

Justifying this shows how shallow we are. This is the same reason we had to get justice on the Ibori case outside the shores of Nigeria. People like you would have carried placards justifying why Ibori is not a thief.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

ndu_chucks:
When Sanusi bailed out bank and sacked some thieving bank MDs, the usual suspects were screaming that he overstepped his bounds. A lawsuit challenging CBN ans Sanusi was filed and we all know that CBN won that case. Sanusi's donation to Kano state was essentially a grant, the bulk of which is to be used to rebuild the police stations and other government offices destroyed by BH.

There are still cases in court regarding those matters.

Let's be factual. I am basing my points as far as I know it, on the legality of such an action. It is far outside the realm and purview of Central Banking. And I have stated my reasons for stating so.

Now you simply replied by giving me a list of grants made by the CBN. My brother it is either you want to live in a lawful country or you want to live in a lawless country. All I am doing is pointing out to you the position of the law. And if you seek to rebutt that which I am saying then you should do so based on the law - you should be able to point me to something which I have missed in the CBN Act, which will show that the CBN does indeed have the power to make such donations.

As regards the list which you gave of CBN grant, the simple fact is that this is already addressed in my opening post. Section 32 of the CBN Act gives the CBN incidental powers - but it specifically mentioned that such powers are to be incidental to, or consequential upon its duties. As such, since emergency relief is ab initio not part of the CBN's powers and duties - then making donations in that regard is naturally not incidental either to or consequential from its duties or powers. This is very plain and simple reasoning.

The same applies to your list. Any thing therein that is not incidental to or consequential from its Central Banking duties is plainly ultra vires (beyond its powers). This is the simple fact of the matter, but the pity is that Nigerians as a people are not given to the letter and spirit of the law. We are rather given to sentiments.

Again I ask you, even commonsensically - the CBN is the banker and trustee for our collective wealth. There is a process for determining how we expend that wealth. Is it proper for the CBN to step out of that process and begin to issue funds to activities that the FG has already earmarked a budget for under specific statutory parastatals - in this case NEMA? If the CBN does so, we should be prepared for the CBN to handout donations at every instance of a crisis - be it a plane crash, militant attacks, armed robbery, floods, the list is endless. At the end of the day we will tow the line of illegality and end up with a badly mis-focused Central Bank which would be running around catering to things that are the responsibility of OTHER specific statutory bodies. I say again that this is anarchy in government.

As I stated earlier, the CBN has donated 100s of millions in grants to several bodies and even individuals. If you call the Kano donation charity, then the other grants will also be classified as charitable donations. Once again, if you people as sure of yourselves, file a lawsuit and see how far you'll get. My guess is that the lawsuit will be thrown out promptly. There is more to litigation than juvenile analysis and emotionalism which are race based and tribal based at their cores.

You see, this is where you really need to weigh your comments very carefully. I don't know if I will pass the test of locus standi inorder to file a lawsuit. The legal principle requires me to have suffered a personal injury or loss, or be about to suffer such, before I can have the personal right to sue. I don't know what position the court may take on that - there are cases where it has been held that a citizen can sue over such where the common good is affected, and so its not inconceivable. Nevertheless the point I need to draw out for you is that there are proper parties who should take this up. Primarily the National Assembly, in my view, but yes, it should also be looked into by the Presidency. Unfortunately I don't know the quality of the legislators we have. Last time Sanusi went before them on an issue of legal powers ofcourse he was able to easily bamboozle them.

Finally, I would urge you to face the facts and the points made and rebutt them one by one. Yes, go legalese, because this is a legal matter. If I have asserted that his actions are illegal and you dispute that, you should make your disputatiuons based on the law as I did. There is no need for you to assume what my intentions are - speaking about ethnic bias and all that is unnecessary - because I did not raise that. Many commentators have raised that and they may or may not have their biases - that is none of my concern. You simply should not put that to me because I never raised it. I based my disputations on the law, and also on common logic therefrom.

ndu_chucks: When Sanusi bailed out bank and sacked some thieving bank MDs, the usual suspects were screaming that he overstepped his bounds. A lawsuit challenging CBN ans Sanusi was filed and we all know that CBN won that case. Sanusi's donation to Kano state was essentially a grant, the bulk of which is to be used to rebuild the police stations and other government offices destroyed by BH.

As I stated earlier, the CBN has donated 100s of millions in grants to several bodies and even individuals. If you call the Kano donation charity, then the other grants will also be classified as charitable donations. Once again, if you people as sure of yourselves, file a lawsuit and see how far you'll get. My guess is that the lawsuit will be thrown out promptly. There is more to litigation than juvenile analysis and emotionalism which are race based and tribal based at their cores.

Since when has it been a responsibility and function of a central bank to issue grants to establishments outside the financial system?

Please highlight the other "several bodies" and "individuals" the CBN has donated to outside the financial system and defend such actions legality.

Please educate me. I am very open to learning.

Sagamite:

Since when has it been a responsibility and function of a central bank to issue grants to establishments outside the financial system?

Please highlight the other "several bodies" and "individuals" the CBN has donated to outside the financial system and defend such actions legality.

Please educate me. I am very open to learning.

I don’t get why you are asking these questions and I’m frankly surprised that you, of all people, are not aware that the CBN issues grants to establishments outside the financial system and that some of those grants directly benefit individuals outside of the financial system.

Here are a few examples:

The CBN has also extended assistance to other governmental bodies/agencies in its community development efforts. Some of the institutions which have so far benefited under this scheme include the following:

National Assembly
To aid the development of sound legislative process, the CBN between 2003-2005, contributed the sum of N50m to build legislative capacity in the National Assembly through Senate Committee on Banking, Finance, and other Financial Institutions and House Committee on Banking and Currency. Also, the CBN sponsored the workshop of the House Committee on Capital Markets with the sum of N2.8m. The Bank also donated the sum of N500,000.00 to the House Committee on Housing & Urban Development.

Professional Institutions
The CBN gives assistance to professional bodies such as the Nigeria Economic Society (NES), Chartered Institute of Bankers of Nigeria (CIBN), Institute of Chartered Accountants of Nigeria (ICAN), the Nigeria Bar Association (NBA), amongst others, to enable them be effective and efficient in service delivery. The Bank also sponsor its employees who are members of these professional associations to the Annual General Meetings of these bodies. A good number of CBN staff are members of these professional bodies.

Other Financial Aid
The Bank is also involved in several other community development initiatives across the country. These include:
i. Construction of a clinic at Yangoji Lepers Village in the FCT at the cost of N3.132m. The project is being sponsored from the alms collection scheme instituted by staff of the Bank.
ii. The Bank in 2002 built two Police Posts for the Nigerian Police Force at Satellite Town, Lagos at the cost over N18 million.
iii. The sum of N6m was donated to FCT in 2006 for Advocacy and Publicity of FCT Reforms.
iv. N4m was donated to Anti Fraud Foundation of Nigeria in 2004
v. N2m was donated to Child Care Trust in 2004
vi. N1.8m was donated to Farm Management Association of Nigeria
vii. Rehabilitation of borehole project at the Church of Christ in Nigeria (COCIN) Hospital and Rehabilitation Centre,

Universities

In response to the general concern about the decaying infrastructure in the first generation universities, the CBN attempted to provide/improve key infrastructure under the Nigerian Universities Capacity Building Programme. The Bank has so far (2011 alone) spent the sum of over N453m on such projects and more Universities are expected to benefit from the programme in subsequent years.

Once again, file a lawsuit if you think Sanusi and CBN operated outside of the law and watch your lawsuit promptly thrown out.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

^^^
Chucks please ignore these bigots.

Even if Sanusi is wrong does it worth all this sweat? Dusting and picking up the constitution because he donated N100m to Kano state?

He is intelligent Aboki that is what they are against not his policies. When GEJ was spending tax payers money to throw a "surprised birthday party" to his illiterate wife where were they? When Obasanjo made himself minister of petroleum where were they? When Ibori was diverting Billions of Delta money abroad where were they?

If law or constitution still exists in Nigeria our socalled thiefing leaders would have been behind bars. Nosense!

It is a pity that every time objective Nigerians try to tackle topical national issues or excesses of public officers, they are shot down in torrents of sentimental firepower.

SLS I believe has a case to answer by doling out money to victims of a man-made calamity. Now, commonsense tells us that CBN is an agency of government. I really do not need to know the Acts setting up CBN by the letter to wake up my curiosity. Are such government agencies now independent that they can now express their concern outside an executive action?
There are several of parastatals and agencies that can repeat the CBN's actions and the result will be chaos and utter waste with no accountability.
What if the Nigeria Communication Commission donated to the erosion control efforts in Anambra State. What will the Ecological Fund then do?
What if the National Population Commission donated to victims of flood in Lagos?

Now if any citizen, or any lawyer questions the CBN's action, why shoot him down by speculating that his intentions are tribal? A suite has been filed in court already and we are waiting for the Judiciary's interpretation of the CBN Act.

@ Ndu Chuks -

It appears you did not read my response to you above. I have explained from the CBN (Establishment) Act that the incidental powers of the CBN are specifically limited to such acts as are incidental to its specified duties. Thus, all the things you mentioned such as the CBN building Police Posts are obvious irregularities and outrightly illegal.

See Section 32 of the CBN Act.

If you can contradict that, please let's have your points. There is no point producing long lists of things that have been shown to be illegal under the law.

You said in your opening post that I was some ill-schooled law student. I think you should be able to educate me on what exactly makes the laws I have cited wrong? If you cannot do that, then frankly you have made no point whatsoever and we can then see the level of "sophistication" (absent) in your argument.

So instead of producing lists, address yourself to Section 32 of the CBN Act.

Addittionally, can you do some reading up on CSR and tell me if it is an appropriate response from Sanusi? As I told you, CSR is for business driven private corporations. I urge you to deny or contest this?

Finally - answer for me whether or not there is a lawful procedure and a lawful agency lawfully empowered with lawfully appropriated funds to deal with these things? If there is, why do we have a Central Bank side-stepping the lawful procedures to undertake these things sir?

Please address yourself to the issues.

Deep Sight:
@ Ndu Chuks -

It appears you did not read my response to you above. I have explained from the CBN (Establishment) Act that the incidental powers of the CBN are specifically limited to such acts as are incidental to its specified duties. Thus, all the things you mentioned such as the CBN building Police Posts are obvious irregularities and outrightly illegal.

See Section 32 of the CBN Act.

You should know that the bolded is subject to interpretation and must not be read literally. I'm afraid I do not agree with your own interpretation and the courts have sided with interpretations contrary to yours in numerous cases. I've already told you that I will not use legalese to debate this issue. Someone mentioned that a lawsuit has already been filed. You will see how quickly the case is thrown out of court very shortly. I will not bore NLers by attempting to litigate the issue here. Quoting a portion of the CBN act verbatim and assuming that the quoted text is not subject to interpretation is frankly disappointing.

Deep Sight:
You said in your opening post that I was some ill-schooled law student.

Ah ah, you mean say dis ting still dey pain you? abeg make u develop deep skin if you wan survive for NL.

ndu_chucks:

You should know that the bolded is subject to interpretation and must not be read literally. I'm afraid I do not agree with your own interpretation and the courts have sided with interpretations contrary to yours in numerous cases. I've already told you that I will not use legalese to debate this issue. Someone mentioned that a lawsuit has already been filed. You will see how quickly the case is thrown out of court very shortly. I will not bore NLers by attempting to litigate the issue here. Quoting a portion of the CBN act verbatim and assuming that the quoted text is not subject to interpretation is frankly disappointing.

There are rules of interpretation that govern the interpretation of legal statutes/ documentation. They are called the Literal Rule, the Golden Rule and the Mischeif Rule. As a general rule, when the text is unambiguous, the literal rule is adopted. The text in this instance is absolutely unambiguous. Therefore the literal rule should apply, and it is hardly open to interpretation.

What is genuinely dissapointing is for you to completely ignore the cited laws and refuse to offer what you consider to be the alternative interpretation which supports your view.

I asked several questions - you have not attempted to respond to any single one of them? You have only produced lists of previous grants many of which are obviously illegal and misdirected. Imagine the CBN building Police Posts? ? ? Does that sound right to even you? ? ?

Ah ah, you mean say dis ting still dey pain you? abeg make u develop deep skin if you wan survive for NL.

Lol, Okay.

POTUT: There are several of parastatals and agencies that can repeat the CBN's actions and the result will be chaos and utter waste with no accountability.
What if the Nigeria Communication Commission donated to the erosion control efforts in Anambra State. What will the Ecological Fund then do?
What if the National Population Commission donated to victims of flood in Lagos?

Excellent point. This is very simple indeed. Every statutory body has a budget - just like the CBN does. If Sanusi's defence is to be accepted, then every Statutory body can do the same "as CSR."

I REPEAT: It is absolute anarchy in government.

Nigerian lawyers and their mannerism in choose and fight. In some cases, those who parade themselves as lawyers will argue all actions shall not flow from written codes while some cases it must be followed according written codes depending on who contravenes the codes. Every action of people in leadership position in Nigeria must be given the same magisterial scrutiny regardless of the ethnicity of person on the receiving end.

Deep Sight:

There are rules of interpretation that govern the interpretation of legal statutes/ documentation. They are called the Literal Rule, the Golden Rule and the Mischeif Rule. As a general rule, when the text is unambiguous, the literal rule is adopted. The text in this instance is absolutely unambiguous. Therefore the literal rule should apply, and it is hardly open to interpretation.

What is genuinely dissapointing is for you to completely ignore the cited laws and refuse to offer what you consider to be the alternative interpretation which supports your view.

I asked several questions - you have not attempted to respond to any single one of them? You have only produced lists of previous grants many of which are obviously illegal and misdirected. Imagine the CBN building Police Posts? ? ? Does that sound right to even you? ? ?

lol, you continue to try to lure me into citing cases and provisions of the CBN act to support my point, ko? Well I prefer not to. Ponder the following and weep because you will not win a lawsuit against CBN:

Some of the major roles of the CBN are to promote a sound financial system in Nigeria, act as a banker, and provide economic advice to the government.

In addition to this role, there are other clauses within the Act that emphasize the developmental role of the Central Bank; and that is encapsulated in the mission statement put this way: ‘to be one of the most efficient and most effective of the world’s central banks in promoting and sustaining economic development.’

It is sufficiently broad to cover whatever will promote economic development and, in the mission statement, it is to be proactive in providing a stable framework for the economic development of Nigeria.

As far back as the very origin, the Central Bank's been involved in community based activities including some of those I listed previously, but the difference has been that until the last few years, most governors have either not been proactive in these areas or have not been as visible to the public and may not have been as active as Professor Soludo and the current governor.

Whatever the Central Bank is doing, the central issue is promoting economic growth and all the economic activities: CBN supports agriculture; CBN supports the power sector - they are all parts of the mandate of the Central Bank. In terms of social activities which date back to the origin of the Central Bank as far back as 1958, CBN has been involved in various community programmes.

CBN cannot afford the kind of aloofness of the typical central bank in a developed country. Monetary policy for the sake of monetary policy is meaningless. You cannot develop the financial sector to the neglect of the real sector, so, to a large extent, the mandate covers most sectors.

Once again, good luck with your lawsuit against the CBN, I can bet my last naira that you people cannot win this case. My advise to you people is to get your Reps to rewrite the CBN act if you are not happy with its current form.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

^ ^ ^ Lol, this simply means that the CBN can do everything conceivable, including taking over all the functions of every single Ministry, Department and Agency in the Country. Abeg bro, let's not be irrational.

If you refuse to make legal refutations and simply rely on a broad statement about supporting economic development, then I am sorry, your argument is simply a non-starter. Virtually every MDA exists to support economic development in one way or the other. The CBN's role in that regard is well specified - not only by law, but by international banking convention. That is such an unbelievably vague apology that I am thoroughly surprised at the boldness of your initial post on this thread. You mean this is all you have?

I am sure you will also say that "supporting economic development" justifies the CBN wading into Poultry Farming as it did sometime ago under this self same Governor? You obviously have no idea what Central Banking is about!

Abeg bro. Try again. This simply won't wash.

This Deep Sight of a guy is particularly stubborn and persistent, unlike a first year law student. All I am saying is that the applicable CBN act's provision is broad enough to cover the CBN actions you find objectionable. Lets wait and see how quickly the courts will throw out your case.

I will not allow you to take connie connie extract legal strategy from me. You cannot win this case.

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TO KEEP NIGERIA ONE IS A TASK THAT MUST BE DONE

By the way, you should school your self on what the term " Developmental Functions " of the CBN refers to. You have used it to refer to any developmental activity conceivable in the world! LOL. Go school up buddy.

Liquidity Management: The Bank is empowered to carry out market activities including but
not limited to issuing, placing, selling, repurchasing, amortising and redeeming securities, for
the purpose of maintaining monetary stability. This is not new, however under what is newly
referred to as a developmental function the Bank may subscribe to or hold and sell shares
and debentures, for the purpose of promoting and developing not only the capital markets
but also encouraging financial/economic growth and development.

http://www.abududalley.net/publications/CENTRAL%20BANK%20OF%20NIGERIA%20ACT%202007%20-%20SIGNIFICANT%20CHANGES.pdf

You know what, I will just make it easy for you. Here is an extract of Section 31 of the CBN Act which describes what developmental function of the CBN refers to. I am now convinced I am speaking to someone totally ignorant of the issues. Please read for your self - Damn! -