Putting paid to rumours of an extension of tenure, Nigeria’s Central Bank Governor, Lamido Sanusi, has stated that he would not seek a renewal of his tenure when it expires in April 2014.
The Governor made this known in a CNBC Africa interview in Abuja, as reported by Bloomberg on Wednesday. Mr. Sanusi said he never intended to stay beyond a single tenure and would not renew his contract when his five- year term expires next year.
An investment bank, Renaissance Capital, said they were intimated in February, by the Central Bank Governor of his decision not to return for second term.
“This implies that monetary policy is likely to remain firm in the short term” the investment bank said, while analysing implications of this decision.
“Given that Sanusi will soon be exiting, we believe that he’d like to leave a legacy of the stability that he has restored since coming into office. Interest rates are thus likely to remain high and liquidity relative tight, which is positive for the naira but negative for credit growth,” the organisation said.
“Given the calls from various that monetary policy becomes more accommodative post-Sanusi. Lower interest rates and looser liquidity may imply a weaker naira but would be positive for credit growth,” the organisation added.
The Central Bank Governor, who has led Nigeria’s banking regulatory body since June 2009 is due to leave office in April 2014. One of the highlight of his career includes the sacking of eight chief executives of banks within four months of taking office, as audit of the banks at that time revealed infractions, mismanagement and reckless lending.
Mr. Sanusi is also credited with leading the Nigerian banks’ reform, which has helped restore some accountability, sanity, and confidence in the nation’s banking sector.
In 2011, he was named central bank governor of the year by London-based The Banker magazine, aside other national and international awards.
While Mr. Lamido insisted that he never intended to seek a second term, industry stakeholders argue that due to his ‘controversial’ ways, he might not be granted a second tenure even if he tried.