Judge orders SSS to return Lamido Sanusi’s passport to him

Judge Ibrahim Buba of the Federal High Court in Lagos has ordered the State Security Service (SSS) to return the passport of the suspended Central Bank of Nigeria (CBN) governor, Lamido Sanusi, to him and pay N50 million (US$305,000) in damages for detaining him.

Sanusi was suspended by President Goodluck Jonathan on 21 February after Sanusi had raised some uncomfortable questions about the US$20 billion that he said the state-owned Nigeria National Petroleum Corporation (NNPC) had failed to remit to the government.

Sanusi, who had been in Niger at a meeting of regional central bank governors at the time, was greeted by SSS agents on his return to Lagos, where he was detained and his passport confiscated.
Sanusi's problems are, however, far from over. He is challenging his suspension in court; not, he says to get his job back but instead to make the impropriety of his effective dismissal a matter of record. At the same time, he still faces questions from his opponents about his tenure at the CBN. Sanusi and his team - retired deputy governor Tunde Lemo and deputy (now acting) governor Sarah Alade - appeared before the Financial Reporting Council of Nigeria, to respond to questions about alleged irregular transactions in 2011-2012.

Meanwhile, the new Central Bank governor, Zenith Bank’s CEO and Group Managing Director Godwin Emefiele, was confirmed on 26 March after a speedy Senate hearing. He takes over from Sarah Alade in June.

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

© 2014 Menas Associates

Nigeria: CBN reports on petroleum subsidy

The Central Bank of Nigeria (CBN) has reported that the federal government paid a total of N1.76 trillion as petroleum subsidies in 2011, as opposed to the N1.5 trillion that had been widely announced. CBN made this revelation on 24 January to the House of Representatives Ad Hoc Committee on fuel subsidy regime monitoring.

Deputy CBN governor Kingsley Moghalu, who represented governor Sanusi Lamido Sanusi, noted that the bank plays a limited role in fuel subsidy management but must 'ensure monetary and price stability.' He said the Petroleum Stability Fund (PSF) has its account domiciled in the CBN and operated by the Petroleum Products Pricing Regulatory Agency (PPPRA). Moghalu explained further that the 'account was opened on 15th of December 2001 and credited with N673.85 billion, and N 666 billion has been withdrawn, leaving a balance of N6.257 billion.'

Also, the deputy governor revealed that the Excess Crude Account (ECA) is domiciled in the CBN and operated by the Accountant General of the Federation (AGF). It had a credit balance of N2,562.78 billion between 25 September 2007 and January 2012. As of 17 January this year, the ECA balance was N 19,261 billion. It was also noted that subsidy went up eightfold in 2009, totalling over 110 per cent, and by October 2011 it had hit over 500 per cent.

Moghalu said this led to a high demand for foreign exchange, prompting the CBN to set up a special foreign exchange audit to determine the veracity of the demand. 'The audit is ongoing and this really put so much pressure on the forex market,' said Moghalu. 'In 2009, the total sales of foreign exchange was $38 billion, and $9 billion was sold to the oil sector alone.'

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

© 2012 Menas Associates

Nigeria: Ibru struck from register

The Chartered Institute of Bankers of Nigeria (CIBN) has struck out the name of a former managing director/chief executive officer of Oceanic Bank and honorary fellow of the Institute, Cecilia Ibru , from its register of members.

A statement from the body yesterday said the decision was in furtherance, maintenance, and observance of ethical standards and professionalism among practitioners of the banking profession in Nigeria. The CIBN explained that the action was taken in line with the decision of its disciplinary tribunal on 12th December, which was confirmed by the governing council of the Institute, at its meeting of 13th December.

The tribunal, made up of eminent members of the banking profession with a retired justice of the Supreme Court as an assessor, in a unanimous decision granted the CIBN's request, indicating that Ibru 'should cease to hold herself out as a member of the banking profession (as provided by s. 16 of CIBN Act). With this development the name of Dr. (Mrs.) Cecilia Ibru has been struck out of the Register of Members of the Institute and hence, Banking Profession. She has also ceased to be a member of the banking profession.'

On 14th August 2009, the Central Bank of Nigeria (CBN) sacked Ibru alongside four other bank CEOs, after an examination revealing that the institutions they controlled had high level of non-performing loans, poor corporate governance practices, lax credit administration processes and an absence of or non-adherence to credit risk management practices, among other problems.

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

© 2012 Menas Associates