Uncertainty Trails Soludo`s Successor

It has been an intense, heated, spirited and sometimes dramatic debate during which speculations have inundated the media from the mendacious and apocryphal to the sublime; to the downright ridiculous. But in the end, it seems the incumbent Governor of the Central Bank of Nigeria; Prof. Chukwuma Soludo will weather the storm.

Indices emerging from Aso Villa, presage that barring any last minute change of heart, President Umaru Musa Yar'Adua, will renew Soludo's appointment. Sources at the CBN headquarters who elected anonymity told Huhuonline.com that none of the indicators that herald such a change at the helm of the bank have been, observed so far. “Usually,” our sources noted; “the in-coming CBN governor, would come over to the CBN headquarters, for consultations and to acquaint himself with the environment, and there would be a frenzy of activities ahead of the formal transition and hand over formalities; but none of this is happening, and with less than 48 hours to go, we can safely conclude Charles will get a second term.”

Anxiety had heightened amid media reports that Soludo (who was appointed by former President Obasanjo) will be shown the door once his mandate expires. Soludo's tenure suddenly became a subject of debate when the governor attempted to re-denominate the naira, a few months after Yar'Adua assumed office. The policy which was approved by former President Obasanjo was aimed at curbing inflation and reducing the overbearing effect of the dollar on the naira.

The policy triggered a chain of reactions leading to the call for the removal of the governor. The critics were basically instigated by bureau de change operators who perceived that their businesses would be grounded if the policy had succeeded. Soludo critics also faulted him for removing the Arabic inscriptions from the naira and a statement purportedly credited to him to the effect that the northern elite were responsible for the crass poverty in the north.

So, the pressure has been persistent with all sorts of campaigns that Soludo should not in anyway be reappointed for a second term. While there were subtle moves by top bankers and financial experts especially from the South for the renewal of Soludo's tenure, the forces against him were said to be just too powerful to be ignored by the President. The line-up of names being bandied as possible replacements includes some members of the President's kitchen cabinet.

Thisday even named the GMD of First Bank, Sanusi Lamido as Soludo's replacement. However, when contacted; Celine Laoder, First Bank principal marketing officer told Huhuonline.com that: “there's possibly only 48 hours to go before there is an official statement from the Presidency regarding the governorship of the CBN. It is therefore prudent to wait until then to get the truth. The executive management of First Bank is absolutely focused on the Bank's growth and transformation agenda, rather than speculations in the media.”

Earlier, the governor of Bauchi state, Issah Yuguda was speculated as Soludo`s successor, but this idea Huhuonline.com learnt, was jettisoned because his wife, Nafisa, second daughter of President Yar`dua, was reportedly not impressed as she was keen on remaining first lady and the perks that go with the office, including the unflattering title of “Her Excellency.” According to sources within Bauchi state government house, the fourth wife who has since supplanted the older wives is not interested in being the wife of a CBN governor.

Some politicians and powerful lobbyists from the North-West and North Central, the only regions that have never produced governor for the bank hatched plots and strategies to ensure candidates from their zones were given the top lucrative office. Mr. Remi Babalola, the current Finance Minister of State and Dr Ngozi Okonjo Iweala, Managing Director of the World Bank were listed among potential candidates for the job.

However, from all indications, the anti-Soludo elements appear not to have gained the upper hand, having exploited their access to the president to no avail. An impeccable source within the presidency, who spoke to Huhuonline.com on condition of anonymity, said: “I certainly don't wish to see my friend out of his job anytime soon. However, I hope if he gets a second opportunity, he will do things differently. The banking industry has gone on without regulation. De-industrialization has set in because CBN would rather fix inflation in the realm of exchange, and not production. The consequence has been unbridled importation and the squandering of foreign reserves as a twin evil. The destruction by fiat, of investment banks popularly called merchant banks in Nigeria, to evolve Universal banks, made it possible for bank deposits to be risked in speculative stock trading”.

The past governors of the bank are Clement Isong (Akwa-Ibom), Adamu Ciroma (Yobe); Ola Vincent (Lagos), Abdulkadir Ahmed (Bauchi); Paul Ogwuma (Abia) Joseph Sanusi (Ondo) and the current Professor Charles Soludo (Anambra).