One Year After, Is Lamido Sanusi The Messiah by Tunde Fagbenle

By Tunde Fagbenle

The story is told (by someone whose integrity I do not question) of what happened shortly after Sanusi Lamido Sanusi (SLS) assumed office as Governor of Central Bank. The young man, he said, on discovering the extent of rot within the system and the gargantuan corruption, nay evil, perpetuated by chief executives of some of the leading banks in the country, particularly Oceanic’s Cecelia Ibru and Intercontinental’s Erastus Akingbola, broke down in tears.

“Suddenly,” he said, “Lamido took out his handkerchief and began to wipe the tears rol
ling down his eyes. He was shaking his head and you could see he was sobbing inside. It was a most sobering sight.”

Sanusi could just not believe how any normal human being in whom the public reposed trust, could abuse such trust so wantonly and so inhumanly. He cried for Nigeria. At that point SLS swore with stern resolve that for as long as he remained the Governor of CBN, even if it would cost him his life, he would not relent until the culprits were brought to justice.

What SLS found was simply unimaginable. And weeks and months down the line, even more and more revelations tumbled out. The banking system that hitherto was seen as the hallowed citadel of integrity and rectitude had been taken over by Lucifer and had become the cesspit of corruption. The identified CEOs had corruptly enriched themselves to inordinate levels, with choice mansions in the choicest cities of the world traced to them individually or their proxies. Some had private planes rivalling those owned by some of the world’s richest persons. Some of these CEOs were worth trillions of naira; some were as rich as some state governments! It made Lamido believe that only the gallows was good enough for anyone who could be so perverse.

But the horrors that Lamido Sanusi discovered was not merely one of aggrandisement and self-enrichment, no, it was one that threatened the very fabric of the banking system. The level of exposure of some of the banks to margin loans and the oil and gas sector had rendered them almost insolvent and their capacity to continue as viable concerns very doubtful.

Sanusi came to the saddle exactly a year ago, replacing Charles Soludo, the egghead who had convinced us he was a whizkid set to revolutionise the banking industry and take Nigerian banks to global relevance and competitiveness. I was one of those taken in by Soludo’s razmataz, after all he was a professor of economics. Soludo introduced expanded capitalisation that forced the banks to increase their share capitals to a minimum of N25 billion, some from a mere N2 billion, telling those that could not make it to merge or close shop.

But in all of this, no one, certainly not silly me knew how little of real central banking our professor was doing; how much inefficiency pervaded – how much the real “professional” bankers were dancing rings around Soludo. The rot was deep but Professor Soludo was busy looking the other way. Now we would never know how much of it he knew or never knew.

But this is not about Soludo. It is about Sanusi Lamido Sanusi and one year of him as the Governor of CBN.

Lamido Sanusi came upon the scene literally on a white charger, fuming with righteous indignation. Rightly so. Unlike his predecessor who was plucked from the academia, completely green in practical banking, SLS combines both intellectualism and practical knowledge of banking, especially of risk management. Before becoming the governor of CBN he already knew half of the shenanigans going on in the banking industry and he was unimpressed by the affluence being flaunted by his colleagues in the banks. As CEO of First Bank, brief as it was, he felt even affronted by the vain and inglorious display of materialism and mediocrity by some of his peers. Then fate worked in his favour and he became governor of CBN overnight.

But is Lamido Sanusi the messiah he wants us to believe he is? He has made enemies for himself, powerful enemies. Those billionaires, nay trillionaires, he has ridiculed and de-robed are unforgiving. Those with vested interest in the banks he has dealt with are up in arms to get back at him. SLS has faced unremitting attack from them and others perhaps genuinely concerned with the probable implications of his irreverence on a sector known more for demure conservatism. Who is this rascal whose mouth runs at the drop of a hat while shooting wildly like a loose canon?

But one year on, Sanusi has earned the respect and trust of the international banking publics. None of his critics have so far been able to unearth any misdemeanour or professional misconduct against him in his banking career. His indignation is righteous then, even if frightfully unmeasured.

There are new and qualitative policies being introduced by Sanusi’s CBN to bring sanity and stability to the banking industry and growth to the real economy. Effective debt recovery measures have been introduced in the banks, and they are now mandated to make full disclosures in their reports just as harmonisation of their accounting period is prescribed. Strong and effective corporate governance is being enforced through the overhaul of the system of board appointments, tenure, and the requirement for responsible and efficient management. An asset management company (AMCON) has been established as a resolution vehicle to assist in the recapitalisation of the banks that have required CBN intervention.

The publics, local and international, are watching and hoping that with one year of angry intervention behind him, Sanusi would now calm down to ensuring a more moderate and collective approach. More importantly, it is hoped that President Goodluck Jonathan will not hearken to the pressure of those who love Nigeria less and are only hurt by Sanusi’s cleansing.

The system needs stability and integrity and I believe Jonathan should give Sanusi the room to make his rescue an enduring one.