19th March, 2014
One of the deputy governors of the Central Bank of Nigeria, Kingsley Moghalu has spoken for the first time on the suspension of Malam Sanusi Lamido Sanusi by President Goodluck Jonathan, blaming Sanusi for overstepping his bounds.
Moghalu spoke with London’s Independent Newspaper on the sidelines of the Africa CEO Forum in Geneva.
The Independent quoted him as saying: “The lesson that can be drawn from it is the limits of central bank independence… There is a very thin line between central bank independence and… political posturing.”
In support of President Jonathan’s government, he said: “The president of Nigeria and the government of Nigeria have never in my knowledge interfered with the function of the central bank. And therefore I think we need to give them credit for respecting [its] independence.”
He added: “The governor began to make very damaging public allegations against the government… allegations that have not been proven, after the president had sent him a presidential query about the finances of the central bank. The government has given a reason for the suspension and that was… to enable an investigation into the allegations against him.”
“Somebody in the central bank was taking on an activist political role. That is not our function. Central banks over the world have clear functions and in your country [Britain] and any other civilised country I know that central bank governors operate within certain expectations and constraints and respect those expectations and constraints.”
He added that the central bank had managed to contain the market fallout from the president’s actions, pointing out that he and his fellow deputy governors were in agreement with Dr Sanusi’s internationally well regarded position as an inflation hawk in favour of high interest rates to keep a lid on prices.
“Life is back to normal,” he claimed.
Mr Sanusi earlier this week requested the President reverse his suspension, saying that every one of the allegations levelled against him and the central bank under his leadership were false.
Sanusi was suspended by President Goodluck Jonathan on 20 February on the heels of his accusations that $20billion oil revenue was unaccounted for by the NNPC.