Sanusi out, Emefiele in

The curtain will be brought down today on the tenure of Mallam Sanusi Lamido Sanusi as governor of the Central Bank of Nigeria (CBN), as Godwin Emefiele resumes.

The exiting Sanusi, though, was suspended by the Presidency on February 20, 2014, over allegations of “financial recklessness”, and he  is still challenging his suspension in court.

In his absence, Dr. Sarah Alade has been holding the fort as the acting CBN governor.

Legal experts believe the new CBN governor will be taking the helm at the apex bank, irrespective of the court’s decision, as he was not joined in the suit filed by Sanusi.

Emefile assumes the post at a period when banks are contending with reduced profitability on the back of higher reserve requirements, lower fees and increased competition. As such, one of his primary objectives will be to ensure the gains in price and exchange rate stability are preserved, consequently maintaining the tightening stance of the previous regime.

Nigeria’s external reserves level had increased marginally to $37.83bn by March 31, 2014, before declining to $37.63bn as at May 9, 2014, representing about 22.98 per cent below the 2013 peak of $48.86bn and 13.69 per cent below the December level of $43.6bn .

On assumption, he is expected to quickly evaluate monetary conditions to determine what mix of monetary policy instruments would be required to achieve equilibrium between the domestic and external sectors of the economy.

Emefile, a former university don at the University of Nigeria, Nsukka, and the University of Port Harcourt, where he lectured in finance, bank management and insurance, is an expert in forecasting and step-taking, leveraging on his excellent acuity and calculated risk-taking skills to crystalise any benefit from existing and future opportunities, as he proved at Zenith Bank.

Zenith Bank Q1’14 recorded an 8 per cent growth in gross earning to N94.32bn in the first quarter of 2014 under his leadership, after he achieved a record N100bn after-tax profit in the 2012 financial year.

It will be seen how Emefiel ducks the controversies that dogged the tenure of Sanusi, while trying to spearhead CBN’s contribution to the attainment of a more diversified economy that would grow more jobs.

This Emefiele acknowledged when he appeared before the Senate.

“During my tenure, whatever monetary policy decisions we take will be those that will lead to the improvement in the level of employment in Nigeria because employment is very crucial to national development,” he said.