A short-sighted and controversial sacking of the reformer in the top job
By G.P. | ABUJA
NIGERIA'S President Goodluck Jonathan has suspended Sanusi Lamido Sanusi, a controversial central bank governor, whose recent allegations threatened to expose a $20 billion case of fraud in the country's notoriously opaque oil industry.
The central-bank governor was suspended on February 20th due to allegations of "financial recklessness and misconduct" and "far-reaching irregularities" according to a statement from the president. The news has created such financial uncertainty in Nigeria that the currency, bond and money markets stopped trading for the day. The naira had briefly plummeted to a record low prior to the premature market close.
Mr Sanusi has long been critical of Mr Jonathan's government and its performance. The recent turmoil was sparked by a letter he wrote to the president, which was leaked to the press in December. It said that the state oil company, NNPC, had failed to remit almost $50 billion to government accounts in violation of the law. Mr Sanusi later reduced this amount to $20 billion, but he refused to withdraw his claim. Ngozi Okonjo-Iweala, Nigeria's finance minister, and Diezani Alison-Madueke, the petroleum minister and chair of NNPC, have insisted that any irregularities were being ironed out. Mr Sanusi's suspension comes just days after he presented detailed evidence to a senate committee investigating the alleged fraud. Many have concluded that the president's decision to suspend him was politically motivated.
Many credit Mr Sanusi with bringing Africa's second-largest economy back from the brink in 2009. He ruthlessly overhauled Nigeria's banks, bailing out lenders, nationalising others and sacking eight bank chief executives, sending shockwaves through the corporate establishment. He has reduced inflation to the single-digits, stabilised the currency and cracked down on money-laundering. Foreign investment in debt markets had spiked during Mr Sanusi's tenure.
In light of Mr Sanusi's achievements, the president's action has spooked investors. Analysts at investment banks have been scathing of Mr Jonathan's decision. Mr Sanusi's allegations of malpractice within the NNPC have also sparked concerns among debt investors about the government squandering more oil revenues in the run up to an election next year. Fewer foreign reserves may jeopardise the strength of the naira, a major concern for debt holders.
Mr Sanusi, who was due to end his term in June, has said that he was surprised it had taken the president so long to suspend him, given his own efforts to strike at the heart of corruption at the state oil company. He has also questioned the legality of the decision and warned that if the suspension is upheld, it will signal an end to Nigerian central-bank independence.
Sarah Alade, the central bank's deputy governor, will take over while Mr Sanusi's alleged crimes are investigated. Mr Jonathan has already nominated a new central-bank governor, Godwin Emefiele, the managing director of Zenith Bank.
