The Battle To Replace Sanusi Lamido At CBN Reaches Feverish Height

Five months to the expiration of tenure of Mallam Sanusi Lamido Sanusi as the Governor of the Central Bank of Nigeria (CBN), the imminent vacant seat had already generated several speculations and anxiety, especially in 2013. Up until now, some of the speculations are yet to materialize. But 2014 would present uniqueness to the conjectures, as those speculations would either be true or not. This is because, in months now, the new CBN helmsman will emerge either in acting or substantive capacity.
At present however, there seems to be several pointers to renewed jostling, high-level lobbying and open declarations of interests, thus fuelling further speculations. For one thing, one of the assessed contenders, Aigboje Aig-Imoukhuede, was by providence, chance and/or opportunity, relieved one of his loads as he retired from the top seat of Access Bank, giving him more freedom to pursue his ambition to the finish line. Even among Sanusi’s lieutenants, there are assessed opinions and body language associated with interest on the coveted seat.
Last weekend, there was another round and brand of speculations as government was alleged to have forced Sanusi to proceed on compulsory leave, which would commence on or before March 2014, two months before the formal expiration of his tenure. However, sources at CBN said they were not aware of the order.
According to report, Aig-Imoukhuede had recently, in an interview with the UK-based Banker magazine, said: “For a professional banker, who has operated as a Chief Executive and had an exciting career, I guess it would be impossible to say that the opportunity to go one level up and work as the head of the apex bank would not appeal. It’s appealing in that context. And it’s appealing if you have a developmental focus, which I do. It’s obviously a platform from which you can have a major impact on the country.
“But at the same time, I’m very aware that such positions are political by nature. It’s flattering so many people think I’m qualified. But, frankly, you leave it to those with the political power to decide.”
The Seat, Speculations, Act and Mandate
The race for governorship of the Central Bank of Nigeria (CBN) has long begun, with no fewer than nine candidates jostling for the plum job. The race became more intriguing, as well as interesting recently with many of the candidates already making deft moves to curry the favour of relevant authorities, while the money market operators are also making several conjectures as to who would possibly emerge and the likely policies that would be brought to bear. So far, no reluctant candidate has been identified among the seven men and two women being tipped for the top position. Those already being tipped for Mallam Sanusi Lamido Sanusi’s seat, whose tenure ends imminently include Aigboje Aig-Imoukhuede, Tunde Lemo, Dr. Sarah Alade, Mallam Isa Yuguda, Faith Tuedor-Mathews, Dr, Bright Okogu, Alhaji Suleiman Barau, Dr. Kingsley Chiedu Moghalu and Dr. Abraham Nwankwo.
The apex financial institution was mandated by the 1958 Act of Parliament, as amended in 1991, 1993,1997,1998,1999 and 2007, to exercise overall control and administration of the monetary and financial sector policies of the Federal Government. These are to ensure monetary and price stability; issue legal tender currency in Nigeria; maintain external reserves to safeguard the international value of the legal tender currency; promote a sound financial system in Nigeria; and act as Banker and provide economic and financial advice to the Federal Government.
Consequently, the bank is charged with the responsibility of administering the Banks and Other Financial Institutions (BOFI) Act (1991) as amended, with the sole aim of ensuring high standards of banking practice and financial stability through its surveillance activities, as well as the promotion of an efficient payment system.
In addition to its core functions, CBN has over the years performed some major developmental functions, focussed on all the key sectors of the Nigerian economy (financial, agricultural and industrial sectors). Overall, these mandates are carried out by the bank through its various departments, led by the Governor. However, the choice of the authority would be among core bankers, economists and relevant technocrats.
Aigboje Aig-Imoukhuede
The Group Managing Director and Chief Executive Officer of Access Bank Plc, formerly Access Bank Nigeria, 46, has been at the helm of affairs of the financial institution since 2002 and Chairman, Access Bank UK Limited, a leadership he has ended. He has enjoyed a distinguished banking career of over two decades, with over 10 years being spent at GTBank. The Chairman of Associated Discount House Limited and a Director and foundation board member of Africa Finance Corporation, he is also a Fellow of the African Leadership Institute under the auspices of Aspen Institute, Colorado, USA; the youngest Nigerian to be conferred with honorary Fellow of the Chartered Institute of Bankers (CIBN); Alumnus of Harvard Business School Executive Management Programme; top 10 Most Respected CEOs in the yearly PriceWaterhouseCoopers’ survey and recipient of the National Productivity Order of Merit Award. From some quarters, he has been adjudged one of the major persons that have recast the face of banking in the country, though originally trained.
Tunde Lemo
The Deputy Governor, Operations, Central Bank of Nigeria since January 2004 and Fellows of the Institute of Chartered Accountant of Nigeria and Chartered Institute of Bankers, has significant leadership and top management experience in both the public and private sectors spanning over 26 years. He holds a Bachelor of Science degree in Accountancy (first class division) from the University of Nigeria, Nsukka, in 1984 where he won seven academic laurels, including the Best overall graduating student in the Faculty.
He attended Advanced Management Programme at the Wharton College, University of Pennsylvania, Philadelphia, U.S.A in 2002, executive training programmes at Harvard University, INSEAD, Fontainbleau, France, Brandies University, Boston and currently in his brief, driving the industry-wide shared services initiative towards achieving efficient banking services with 30 per cent cost savings for the Nigerian banking industry and greater penetration of banking services, among others.
Dr. Sarah Alade
Deputy Governor, Economic Policy, CBN, since March 2007. She attended the University of Ife, Ile-Ife (now Obafemi Awolowo University) where she obtained a degree in Economics in 1976. She also obtained an M.Comm degree at the University of Melbourne, Melbourne, Australia in 1983 and a Ph.D Management Science (Operations Research), from the University of Ilorin in 1991. She joined CBN in 1993 as an Assistant Director in the Research Department where she served as Head, State Government Finance Office (1993-1996), Head, Federal Government Finance Office (1996-2000) and Head, Fiscal Analysis Division (2000-2004). Alade has served on teams of major economic policy studies, and the preparation of Central Bank of Nigeria’s Monetary and Credit Policy Proposals over the years, among others.
Dr. Kingsley Bosah Chiedu Moghalu
Born 1963, in Lagos, he is the Deputy Governor of the Central Bank of Nigeria (CBN), and head of the Bank’s Financial System Stability directorate, responsible for regulation of banks and financial institutions, and the development finance programmes for the apex bank since September 2009. He is assessed as having traversed various departments of CBN. Moghalu obtained a degree in law at the University of Nigeria, Nsukka in 1986, Masters from The Fletcher School of Law and Diplomacy at Tufts University, USA, and a Ph.D. in International Relations from the London School of Economics, UK. He also obtained an International Certificate in Risk Management from the Institute of Risk Management, London and executive education courses at Harvard University’s Kennedy School of Government and at Harvard Business School respectively, among others.
Mallam Isa Yuguda
He was born on June 15, 1956 in Yuguda. He studied at the North East College of Arts & Science in Maiduguri (1974 to 1976) and then at Ahmadu Bello University, Zaria (1976 to 1979), graduating with Bachelor of Science in Economics. He obtained a Masters in Business Administration in 1998 at the University of Jos, in Plateau State and was elected Governor of Bauchi State. Yuguda has worked at the Federal Mortgage Bank, (1981 to 1984); Savannah Bank as a Credit Manager in Sokoto (1986 to 1987); Inland Bank as Acting General Manager (1991 and 1992); Managing Director and Chief Executive of the same bank (1992 to 1999); and Managing Director and Chief Executive of NAL Merchant Bank (1999 to June 2000).
Faith Tuedor-Matthews
A Delta State indigene, she is a Harvard Business School alumnus and holds an MBA from the Aston University, Birmingham, UK. She has extensive experience working with leading banks in Nigeria, starting from the United Bank for Africa in 1985 after her Youth Service, joined Ecobank Transnational Inc. in 1992, rising to General Manager; Executive Director, Standard Trust Bank/UBA and Deputy Managing Director in 2011, after about 26 years banking experience, which spans all facets of banking. She is presently on a national assignment at the bridged bank- Mainstreet Bank Limited, as Group Managing Director and Chief Executive Officer.
Dr. Bright Okogu
He has been appointed the new Director-General, Budget Office of the Federation by the President. He once served as Special Adviser to the Minister of Finance between 2004 and 2007. Okogu obtained his first and second degrees from the London School of Economics in 1978 and 1979 respectively, and capped his academic pursuit with a Ph.D. from the University of Oxford in 1987. He has worked at the Organization of Petroleum Exporting Countries; lecturer in Economics at the University of Jos; and Senior Economist at the International Monetary Fund (IMF). He was at various times in charge of Saudi Arabia, Kuwait and Qatar. He played a key role in the deal that made Nigeria achieve the popular debt relief from the Paris Club of creditors.
Dr. Abraham Nwankwo
Nwankwo was appointed Director-General of the Debt Management Office in 2007, having joined the services of the agency in 2001 as Assistant Director. Between July 2006 and July 2007, he had a stint at the board of the World Bank, serving as Senior Advisor to the Executive Director, Africa Group II Constituency.
The DMO boss had first degree in Economics, Masters and Ph.D. in the same field from the University of Nigeria Nsukka, winning the Prize for the best student all the times. Before joining the Public Service he had worked in the banking and finance sector at top management positions.
Alhaji Suleiman Barau
The Deputy Governor, Corporate Services Directorate, since December 2007. He was born on the August 14, 1959 and attended the Ahmadu Bello University Zaria, obtaining a degree in Economics. He also attended University of Bradford, England and the University of Jos and obtained Postgraduate Certificate in Planning and Appraisal of Industrial Projects and an M.SC in Economics (Money and Finance) respectively. He was appointed to the Board of CBN as the Deputy Governor, Operations in 2007. As banker and economist, he has worked in various financial institutions, with his experience substantially in Treasury and Investment Banking, Corporate Finance, Credit Analysis, Financial Institutions, Relationship Management and Private Banking, as well as manufacturing and currency printing experience.
In Retrospect
Historically, the CBN top job had been occupied by top bankers, economists and even a historian. The first person to occupy the post was Roy Pentelow Fenton, who still remains the only expatriate that served the nation in that capacity. He was appointed on July 24, 1958 and left office on July 24, 1963, preparatory to Nigeria’s emergence as a republic.
He was followed by the Late Alhaji Aliyu Mai-Bornu, who served from July 25, 1963 to July 22, 1967. Mai-Bornu was born in 1919 and began his elementary school in 1932 and proceeded to the then Kaduna College in 1938. In 1942, he qualified as an English Language Teacher. Later he proceeded to Bristol University to study Economics. In 1957, he served with the Northern Nigeria Public Service as an Administrative Officer; CBN in 1959 as an Assistant Secretary, later the Deputy Secretary and Secretary; before his appointment as Deputy Governor in 1962. He became the first indigenous Governor of the Bank in 1963 and retired from its service in 1967.
Dr. Clement Nyong Isong took over from him in August 15, 1967 and retired in September 22, 1975. The Late Isong was a banker and politician, who manned the affairs of the apex bank during the military regime of General Yakubu Gowon. Former governor of Cross River State (1979–1983), Isong was born on April 20, 1920 in Eket, Akwa Ibom State. He studied at University College, Ibadan, Iowa Wesleyan College, Mount Pleasant, Iowa, USA and the Harvard Graduate School of Arts and Sciences where he obtained a Ph.D. in Economics. He taught Economics at University of Ibadan; Secretary, at CBN; later the Director of Research; and Adviser in the African Department of the International Monetary Fund. During his tenure, Nigeria avoided running up unsupportable debts. Mallam Adamu Ciroma was next. Born on November 20, 1934 at Potiskum, Yobe State, he served from 1975 to 1977. He completed his primary education in 1949 at the Borno Middle School in Maiduguri from where he proceeded to Barewa College in Zaria for his secondary education in 1950. After obtaining his A Levels in 1957, he proceeded to the University of Ibadan and obtained a degree in History. Ciroma was appointed to the board of the Central Bank in 1970, where he served as a Director, before his appointment as the Governor in 1976.
Ciroma was followed by Mr. O. O. Vincent, who served from June 28, 1977 until June 28, 1982. An elder statesman and respected opinion leader, Vincent’s views on critical national issues were highly valued. He was appointed a Vice President at the African Development Bank, Abidjan, Cote D’ivoire between 1966 and 1973.
Vincent was born on 16 May 1925 in Lagos. He attended CMS Grammar School, Lagos; the Administrative Staff College in England; and the University of Manchester. In 1975, he became Deputy Governor and Governor from 1977 to 1982.
From June 28, 1982 to September 30, 1993, the Late Alhaji Abdulkadir Ahmed served as the Governor of CBN. Ahmed was born on October 31, 1940, in Jama’are, Bauchi State. He had his early education in Jama’are and Bauchi before proceeding to Barewa College Zaria, in 1955. He graduated from South West London College in 1972 after a stint at the Nigeria College, (University of Ife) in 1961. He was a Fellow of the Institute of Chartered and Certified Accountants (FCCA) and the Institute of Chartered Accountants (FAC)
In 1993, Dr. Paul Agbai Ogwuma, was appointed as the governor of CBN
Until May 29, 1999, during the military regime of General Sani Abacha and his successor General Abdulsalami Abubakar. Ogwuma was born on April 24, 1932. The banker studied at New Bethel College, Onitsha; Bradford Institute of Technology and Bradford University, both in , United Kingdom. Ogwuma started his banking career in Nigeria at the United Bank for Africa; later at Union Bank of Nigeria and retired as Managing Director and Chief Executive Officer in the late 1980s.
Chief Joseph Oladele Sanusi, followed Ogwuma from 1999 and left office on May 29, 2004. Sanusi was born on September 24, 1938 in Ogbagi-Akoko, Ondo State, Nigeria. He attended South-West London College and Kingston College of Technology, England from 1962 to 1965 and qualified as a Chartered Accountant in England. He became a member of the Institute of Chartered Accountants of Nigeria (ICAN) in 1969 and a Fellow of the Nigerian Institute of Bankers in 1987. Sanusi joined CBN in 1966 as a Deputy Manager, rose to Departmental Director in 1977, appointed the first Chief Executive of the Securities and Exchange Commission in 1978. He later became Executive Director, Monetary and Banking Policy, CBN; later Deputy Governor; Managing Director and Chief Executive of United Bank for Africa; and First Bank of Nigeria. In May 1999 he was brought out of retirement and appointed the Governor of CBN.
The Banking Consolidation was the popular reform policy of the Prof. Chukwuma C. Soludo, who mounted the leadership of CBN in 2004 to May 29, 2009. Soludo was born on July 28, 1960, and hails from Aguata Local Government Area of Anambra State. An alumnus of University of Nigeria, Nsukka, with a first class degree in Economics, he also undertook his post-graduate and doctorate degrees in Economics from the same University. Soludo had post-doctoral training in The Brookings Institution, Washington, DC; University of Cambridge, UK, as Smuts Research Fellow and Fellow of the Wolfson College; the UN Economic Commission for Africa as a Post-Doctoral Fellow; University of Warwick as a Visiting scholar and Visiting Research Scholar at Center for African Economies, University of Oxford (with funding by the Rhodes committee). He also worked at the World Bank.
At last, Mallam Sanusi Lamido Sanusi came on board and popularized the Banking Reforms agenda from March 6, 2009, with sustained campaign till date. Born on July 31, 1961, to a technocrat, Sanusi is the grandson of a former Emir of Kano and Islamic Scholar, Alhaji Muhammadu Sanusi. He started his early education at St. Anne Primary School, Kakuri, Kaduna and the King’s College, Lagos. He then proceeded to Ahmadu Bello University, Zaria, and obtained a degree in Economics in 1981 and did course work for Master of Science degree in Economics with distinction in Monetary Policy in 1983. He has traversed many financial institutions.
Reactions
But reactions have been coming on the issue, which appeared topical and central in the development of country. One-time federal permanent secretary, who served in several ministries and agencies, Deputy Governor of the old Bendel State, former Group Managing Director and Chief Executive Officer of Afribank Nigeria Plc, Chief John Edozien, said that when the present Governor of the CBN retires, “I believe that he would feel that he has served his country well and made his mark. We should collectively as a nation thank him for his services and wish him well in all his future endeavours.
However, he said the job of a Governor of the Central Bank of any nation is a very important one. His responsibility over the conduct of monetary policy and regulation of the banks and other financial institutions in the country has serious implications for the economic development of the country. It is therefore important to have the right person in that position. I believe there is a profile for such a person already in place. I will put some emphasis on the knowledge and practice of Economics especially Monetary and International Economics with years of banking experience at the top level as an added advantage.
For Prof. Pat Utomi, the selection of the successor is the most important thing. “CBN as an institution is so fundamental in the nation’s development drive such that it cannot be taken for granted, especially those who lead it. My comment now and those in past are not meant to hurt any person, but I still hold CBN responsible for the regressive nature of Nigeria’s economy. To me, it is the weak link in the nation’s economic travails.
“Like Barack Obama, we need strong institutions, not strong men. CBN top job does not require strong man, but a man who will make the institution strong. This is my first criterium- an institution builder. We have always towed the wrong line in this regard and we have always paid dearly, even till now.
“There are various perceptions of where Nigeria is headed whenever a policy is made, hence central bankers should be people of very few words. Granted, there are people who are intelligent and can do well in other public assignments, but their personality traits may not be suitable for central bank job due to the sensitive nature of the institution.
“CBN now needs somebody who is calm, with nerves of steel under pressure, one that realises that there are so many perspectives and dimensions to an issue, hence cannot be all-in-all. He must be a good listener, not hastily foreclosing. It is also my view that whoever emerges, should be stake-free from financial institutions, in terms of shareholding.
“Whether perception or reality, the issue of interest has tainted and generated controversies over CBN’s policies so far. It is also erroneous to believe that commercial bankers can only make good central banker, because the two are not the same in scope and competency requirements.
“Tested intellectualism has to be paramount. He should be a team player and we could also look for one in the academia. The successful man should have respect for entreprenuership and property rights, always taking into cognizance the environment in which the apex bank operates. The issue of growth in figures devoid of growth in real terms- standard of living, job creation, infrastructure development, among others.