Business
Nigeria: Naira takes a hit after Central Bank Governor Sanusi leaves
Immediate Past Nigeria Central Bank Governor, Lamido Sanusi. PHOTO/File
Nigeria’s President Goodluck Jonathan on Thursday suspended the Central Bank governor
in a surprise move that halted bond trading and sent the Nigerian naira to a record low, after his accusations of missing oil revenue sparked a public outcry and criticism against the government.
According to President Jonathan’s spokesman Reuben Abati, in an e-mailed statement, Lamido Sanusi, was suspended for alleged “financial recklessness and misconduct”.
Sanusi will be replaced by his deputy, Sarah Alade, as acting governor.
Jonathan immediately sent to parliament the name of another banker he proposed as the new custodian of the nation’s federal reserves, making clear that he effectively has fired Sanusi, a 52-year-old career banker.
Sanusi, who has spearheaded bank reforms and acknowledged making powerful enemies among vested interests in a country, could not immediately be reached for comment.
The Nigerian naira dropped from 163 to 169 to the U.S. dollar when Jonathan’s statement became public, financial analysts said. The Central Bank stopped trade in its fixed income and bond market while the Nigerian Stock Exchange remained open.
Analyst Bismarck Rewane warned of “a very difficult time” for the naira and Nigeria’s financial market in the near-term. He said the suspension from a position held in high reverence increases uncertainty as Nigeria prepares for a hotly contested presidential election in February next year.
