Nigeria: President Jonathan sacks NNPC's GMD

On 1 August it was announced that President Goodluck Jonathan had dismissed both Nigerian National Petroleum Corporation’s (NNPC) Group Managing Director (GMD), Andrew Yakubu, and Hamidu Namtari, Managing Director of the NNPC’s upstream subsidiary, Nigerian Petroleum Development Company (NPDC).

The President’s special media and publicity adviser, Dr. Reuben Abati, released a statement naming Borno State’s Dr. Joseph Dawha as NNPC’s new GMD and Anambra State’s Anthony Ugonna Muoneke as NPDC’s new GMD. The statement continued that “All the appointments are with immediate effect,” but refused to comment on the reasons behind the dismissals. 

Reports in Nigeria, however, suggest that the dismissals are linked to the allegations by the Central Bank of Nigeria’s former governor, Lamido Sanusi, over the NNPC’s misuse of public funds and an upcoming PWC audit of NNPC finances and revenue losses. 

The statement continued that President Jonathan had approved a further shake-up of NNPC management with Ms. Aisha Mata Abdurrahman reassigned to the corporation’s Commercial and Investment GMD and Dr. Attahiru Yusuf’s appointment as its Business Development Group Executive Director.

This week’s issue of Nigeria Politics & Security and the August issue of Nigeria Focus will provide expert analysis about the changes and the reasons behind them.

Nigeria: CBN raises benchmark rate

The Central Bank of Nigeria's (CBN's) Monetary Policy Committee (MPC) has raised the Monetary Policy Rate (MPR), which is the benchmark interest rate for the country, by 25 basis points, to 6.5 percent from 6.25 percent. The bank explained that the increase in the benchmark rates was a proactive measure, aimed at hedging against inflationary trends and controlling excess liquidity in the system occasioned by spending on election campaigns, government spending and fund injections by the Asset Management Corporation of Nigeria (AMCON). AMCON is in the process of buying up all the non-performing loans and toxic assets of the rescued banks.

The MPC also raised the Cash Ratio Rate (CRR) from 1 per cent to 2 per cent, effective from 1st February, and the Liquidity Ratio (LR) by 500 basis points, from 25 per cent to 30 per cent, effective from 1st March.

CBN Governor Lamido Sanusi explained that the tightening measures to curb inflation were taken because the country's economy had underperformed despite the favourable conditions and notwithstanding recent stabilisation of price inflation.

Sanusi also seized the opportunity to reiterate his view that the payment of federal subsidies on petroleum products is unsustainable and a constraint on the development of the country's refineries.

For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.


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