Former governor of the Central Bank of Nigeria (CBN), now Emir of Kano, Alhaji Muhammad Sanusi II has criticized President Muhammadu Buhari’s endorsement of the CBN’s foreign exchange policy, arguing that the policy encourages corruption.
Disclosing this in an interview with Financial Times, he stated that Buhari “has put an end to the (crude) swap regime which is also one side of rent-seeking and corruption. He has made the NNPC start producing accounts, so there is greater transparency.
“These measures are good for the economy and display strong political will to change the system. But getting monetary and fiscal policies right will be crucial for broader progress in structural reform.”
The publication quoted Sanusi as saying that President Buhari’s anti-corruption stance was “totally inconsistent” with the forex regime he supported and that it “encourages corruption and rent-seeking similar to the fuel subsidy regime”, according to a Daily Post report.
He expressed dissatisfaction over the monetary policy regime which he said has “very obvious drawbacks that far outweigh its dubious benefits”.
“Unfortunately, because the exchange rate is right out there in front now, monetary policy is being seen as the barometer for broader economic thinking,” he said, adding that “It is sad that on this one policy you get it so wrong that you risk taking away attention from everything else you are doing.”
On why he frused to devalue of Naira during his tenure as CBN governor, Sanusi said it was because at that time, the country “had reserves of over $40bn and an oil price at over $110.”