Suspension of CBN governor will affect naira – Experts

Financial experts have said that the suspension of Sanusi Lamido Sanusi as the  governor of the Central Bank of Nigeria (CBN) would have impact negatively on the nation’s currency, foreign investment and capital market.

Some of the operators  who spoke with Blueprint on Sanusi’s suspension said that the action would make foreign investors to have rethink in  all their investment as they do not know the next direction of the CBN monetary policy.                                      Reacting on

the development, the Managing Director Maxifund Investment and Securities, Mazi Okechukwu Unegbu said that the suspension would not only lead to the depreciation of the naira, the nation’s external reserve would also drop from its current position.
He said that the removal of the CBN governor by Mr President is long overdue, adding that with government pronouncement  people  would assume that he was suspended because he exposed corruption in the country.

Speaking further, he said, “the action came  too late, it should have been done two years ago. Sanusi  talks too much and not conservative governor.” Describing Sanusi as somebody who does not obey financial reputation, he said  Mr President has the right to suspend CBN governor but not  sacked.

The Managing Director, H.J. Trust and Investment, Mr Harrison Owoh said that although the Presidency has power to hire and fire, but  Sanusi as CBN governor was appointed by an Act of Parliament which stipulates the terms and condition of his removal, stressing  that CBN governor has  five years tenure and it is renewable.

Admitting that the Sanusi might have operated beyond his boundary, he said the federal government should have taken a second look since his tenure remains only few months to expire.  He said that allowing him to complete his tenure would have settled all the negative comment that would be instituted against the federal government.

Owoh further  said that in a short term, the government action would bring disparity in the financial system untill the federal government appoint  new CBN governor.

He said that the action would affect foreign investment in the country, adding that some foreign investors may begin to have a rethink in their investment in Nigeria till  they  know the direction to be taken by  the new CBN governor.
In his own reaction,, the Managing Director APT Securities and Fund Ltd, Malam Garba Kurfi said that the crisis in the CBN would affect nation’s capital market especially now the market had been on the down ward trend  due to what is happening in other jurisdictions.

He explained that with the new development foreign investors might  be worry on the CBN new policy on the foreign exchange and other economy policies that will likely come to be as regard to other changes

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