Lamido Sanusi: General Overseer Accountable Only To The Gods PART 2

Unlike the men in white flowing robes, Sanusi is accountable to the gods; the gods of free market economics: interest rates, inflation, production, distribution and exchange. As I have argued before, (See here and here ) the independence of the CBN and a proper corporate governance framework for its functions are two separate issues. Time and again, Sanusi conflates the two for fear that tinkering with any internal structures of the CBN would inexorably lead to the emasculation of its independence and autonomy. He may well have a point in the sense that the strong and sophisticated political systems in the West, which ensure that their central banks are squarely within the purview of democratic accountability, is to be contrasted with our own parochial and sometimes shambolic democratic structure, with which no central banker would wish to take a risk.

That said, since when does an absence of a strong and sophisticated democratic structure become a permanent bar to overseeing the work of any central bank? Besides, are governors of central banks saints who can do no wrong? Speaking at the 2012 edition of the CBN-FITC continuous education programme for directors of banks and financial institutions in Lagos, in October 2012, Sanusi stated: “Many investors and consumers of financial services in Nigeria are becoming increasingly discerning and sophisticatedin the choice of banks they have a relationship with…thestark message here is that toremain competitive in Nigeria’s changing banking landscape, banks and financial institutions must innovate and adapt their corporate governance practices so that they can meet the demands of their stakeholders and grasp new opportunities…” He further stated in a telling rebuke to the banks: “…views of corporate governance are shifting from mere obligation and compliance with laws and codes of best practice, to a strategic business imperative…”

Sanusi Lamido

Well, listening to this, one has to believe that the governor was not just reading from a prepared script, one has to believe that he does indeed understand and believe in the words he uttered to the bank chiefs. The question then is why does he not think similar sentiments apply to him and the operations of the CBN? For instance, how does his chairmanship of the Board of Governors of the CBN resonate with the imperatives of corporate governance? How does the governor think the demandsof the CBN’s stakeholders can be grasped? In case it escaped the governor, the stakeholders of the CBN are the people of Nigeria through their elected representatives.

Whenever the governor has appeared in front of the lawmakers over the “autonomous” vs. “interference” debate, he has mounted a spirited defence of the current CBN’s chain of command, and its tenuous bureaucratic link to the Executive and Legislature. In the same breath, he was lecturing bankers in Lagos on how corporate governance should not be viewed as a “mere obligation and compliance with laws and codes of practice”. 

This smacks of hypocrisy at best, cack-handed arrogance at worst. Recently, I was debating the pervasive influence of the country’s top GOs in the wallets of their congregationwith a colleague of mine, a devout Christian, and an assiduous payer of all sorts of offering at his church, andwondering how people fill up those empty barrels strategically located by the podium at one of those “prayer nights”, with cash and walk away from it. How can people drop their hard-earned currencies inside the barrel without batting an eyelid, and without further ado? I asked. “It’s in exchange for God’s blessings”, he replied. Yes, all being well, but what if the money is later diverted to the Pastor’s own personaluse? I asked in solemn contemplation. “Oh, that is something between the Pastor and God”, my friend retorted. “Mine is to give and walk away; I leave the Pastor and the money to God”, he further said with conviction. I left with the feeling of wondering how being in custody of people’s money with the freedom to use as one deems fit must ranks as one of the best jobsin the world. 

The thought of any CBN governor one day being able to model himself or herself on the ethics of GOs is deeply troubling. It makes the case for a more accountable CBN governor unanswerable.