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.