Inside Financial Reporting Council’s allegations against CBN Governor, Sanusi

Sanusi lamido sanusi
Sanusi Lamido Sanusi

The Financial Reporting Council of Nigeria, FRCN, has released a damning report on the operations of the Central Bank of Nigeria, CBN, under its embattled Governor, Lamido Sanusi.

Inside the 13-page report which was made available to the media Friday, the council made far reaching allegations of financial impropriety against the suspended CBN governor.

The FRCN report is said to have been based on Mr. Sanusi’s response to a query by President Goodluck Jonathan in 2013, over the regulatory bank’s spendings.

Mr. Jonathan had on Thursday ordered the suspension of Mr. Sanusi and directed him to hand over to Sarah Alade, the most senior Deputy Governor of the bank.

The Special Adviser to the President on Media and Publicity, Reuben Abati, while announcing the suspension of the CBN governor, said Mr. Sanusi committed acts of financial recklessness and misconduct that are inconsistent with the vision of the apex bank.

Mr. Abati’s statement reads, “Having taken special notice of reports of the Financial Reporting Council of Nigeria and other investigating bodies, which indicate clearly that Mallam Sanusi Lamido  Sanusi’s tenure has been characterized by various acts of financial recklessness and misconduct which are inconsistent with the administration’s vision of a Central Bank propelled by the core values of focused economic management, prudence, transparency and financial discipline;

“Being also deeply concerned about far-reaching irregularities  under Mallam Sanusi’s watch which have distracted the Central Bank away from the pursuit and achievement of its statutory mandate; and

“Being determined to urgently re-position the Central Bank of Nigeria for greater efficiency, respect for due process and accountability, President Goodluck Ebele Jonathan has ordered the immediate suspension of Mallam Sanusi Lamido Sanusi from the Office of Governor of the Central Bank of Nigeria.”

The report of the Council cited by Mr. Abati, claimed that Mr. Sanusi spent a whopping N1.257 billion for lunch for policemen and private guards in 2012.

The Council also alleged that Mr. Sanusi made bogus payments to airlines for currency distribution as well as held an account balance of N1.423 billion for an unidentified customer since 2008.

The Council described Mr. Sanusi’s response to the President’s query as “a clear display of incompetence, nonchalance, fraud, wastefulness, abuse of due process and deliberate efforts to misrepresent facts.”

Its also accused the apex bank governor of violating financial regulations and carrying out activities with financial implications not related to the CBN’s mandate.

Other crimes allegedly committed by Mr. Sanusi, according to the Council, included approval of billions of naira in ambiguous payments to invoices referred to as “Centre of Excellence” and “Contribution to Internal National Security,” and the CBN’s claim that it paid N38.233 billion to the Nigerian Security Printing and Minting Company Plc in 2011 for the “printing of bank notes” whereas the turnover of the entire printing and minting company group is N29.370 billion.

In view of its findings, the Council urged the President to exercise the powers conferred on him by Section 11 (2) (f) of the Central Bank of Nigeria Act, 2007 or invoke Section 11 (2) (c) of the said Act and cause the Governor and the Deputy Governors to cease from holding office in the CBN and also direct the Financial Reporting Council of Nigeria to carry out a full investigation of the activities of the CBN.

Mr. Sanusi is yet to react to the allegations, but his aides say the allegations were false and concocted to smear the CBN Governor.

But an economist, Bismarck Rewane, said the Council should beam its anti-corruption searchlight on other institutions in the country and not stop at the CBN.

In an interview with PREMIUM TIMES, Mr. Rewane said, “The Financial Reporting Council of Nigeria should look at corruption in every institution in the country if it must be taken serious by Nigerians.

“I would have taken them more seriously if they had exposed corruption in about a 100 other institutions of government in the country and not just stop at the CBN.

“If the Council does not investigate the cases of corruption in many other institutions of government, then it would be seen to be selective in its anti-corruption drive. They cannot claim to be fighting corruption in one sector when almost every sector of the nation’s economy is riddled with corruption and official recklessness.”

Also speaking on the issue, fiery Lagos lawyer, Femi Falana, said Mr. Sanusi remained the substantive governor of the CBN, even when he is under suspension.

Speaking with PREMIUM TIMES, Mr. Falana faulted the move by the President to appoint a new governor for the apex bank.

He said, “The law presumes that Mr. Sanusi is still the substantive Governor of the CBN even when he has been placed on suspension.  There is no basis for the appointment of a new governor for the apex bank until the end of Mr. Sanusi’s tenure or removal from office through the Senate.

“Having regard to his irreconcilable differences with the Jonathan administration on the operation and management of the Federation Accounts, Mr. Sanusi ought to have voluntarily resigned his appointment. But he decided to remain in office while taking the administration to the cleaners at the tail end of his 5-year tenure.

“To that extent, Mr Sanusi has himself to blame for his suspension from office on account of alleged financial recklessness.”

Mr. Falana, however, urged Mr. Jonathan to suspend the process for Mr. Sanusi’s replacement by withdrawing the new nomination he forwarded to the Senate on the grounds that Nigeria cannot have a suspended governor and a substantive apex bank governor at the same time.

Alternatively, Mr. Falana advised the Senate to put off any debate on the fresh nomination sent to it, pending the end of the tenure of the suspended governor.

Continuing, Sanusi said, “The diversion of huge public funds from the Federation Account alleged by Mr. Sanusi should not be swept under the carpet. At the same time, the allegations of financial recklessness leveled against Mr. Sanusi ought to be investigated without any delay.

“Once again, I call on the Federal Government to allow the Auditor-General of the Federation to audit the accounts of the CBN and the NNPC by virtue of section 85 of the Constitution.

“The reports of such audit should then be submitted to the National Assembly for necessary action in line with the provisions of section 85(4) of the Constitution.”


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  • Mosaku 147

    FRCN,why have you guys not released this report before now.if Mr President had seen this report since May last year as been said then why wait till Sanusi spilled on the $20b.
    Big afterthought.rubbish and fake.

    • Kola Adekola

      That question is quite silly actually.
      Sanusi only told his ever-changing story precisely because he knew the report was gonna nail him horizontally. Its the drowning man syndrome.

      • Concern Nigerian in diaspora.

        My candid advise to the helpless Nigerian is to keep watching this handball game and never to rush commenting on the issue at hand ‘cos this is just the beginning of this critical issue, we are yet to see the middle nor the end of the whole issue.
        What you don’t realise is that whatever brought them together will definitely separate them. THE CURSE OF THE POOR NIGERIAN IS NOW WORKING SERIOUSLY ON THEM. JUST LET’S KEEP CALM AND WATCH. WE ARE YET TO HEAR THE TRUTH OF THE MATTER.

  • Ikechukwu_67

    Where is the 20 billion dollars? Where is it? I know the next cbn governor will say “money nor loss”. Where is the money???? Very soon we will have a letter written by boko haram in 2011 to sanusi in the news I know.where is the money? ????

  • Khafilat Adeoye

    Nigerians do not have shame at all, at all.

    How on earth can anyone describe some one like Sanusi Lamido Sanusi as a CBN Governor …. it is so shameful.

    Any where in the world when a CBN Governor makes a statement ….. you can take it to the bank.

    The public statements of a CBN Governor carry a lot of weight and are taken very seriously because they have related implications.

    But what do you have in Nigeria?

    A CBN Governor comes out to say that $50Billion is missing ……. the next day he says it is not $50Billion, it is $12.5Biliion ……. the next day he changes that figure and says it is $10.5Billion and finally he says it is $20Billion …… and yet he expects to be believed ….. who knows may be tomorrow he would say it is $100Billion …… just anything that comes out of his shameless mouth.

    This man Sanusi Lamido Sanusi is not a CBN Governor …… he is a disgrace.

    But the President is not better either.

    The Financial Reporting Council of Nigeria recommended that all the Deputy Governors should be removed ….. why should the President appoint one of them as Acting CBN Governor?

    Something is wrong with Nigerians especially with those at the top in Abuja.

    • elnas

      I wish u have the understanding nd objectivity of looking at this whole stuffs rationally and intelligently

    • Angryman

      It is not only the Deputy Gov that should be removed but all those who knew /participated in the financial recklessness and fraud
      Their removal is likely to be in phases instead of in one fell swoop in order to minimize the repercussions

      • ayoyo

        O my goodness, don’t you think we have enough people unemployed? Why o why?

        • Angryman

          I believe you didn’t understand my post
          Those to be removed are the corrupt ones
          They are the cause of the unemployment you are talking about
          Not to worry, others will be employed to replace them – equation balanced

          • ayoyo

            Just joking,

  • Jakadiya

    Nigeria is where unintelligence is forced down the throat of intelligent people and are forced to swallow. Otherwise, you are labeled an opposition or a militant. People brought to power by God Fathers (due to so many reasons, merit not part it), are always scared of objectivity, because its a strange word to them.

  • emmanuel

    Bismark is speaking from both sides of his mouth because he is a major beneficiary of Sanusi’s financial profligacies.

    Premium Times shame shame shame!!! This your report is begging for readership as it a sham.

    You have blatantly refused to publish the report which is already everywhere. I felt good yesterday when a hater of Jonathan who swore that Jonathan would not win 2015 election gave a thumb up to GEJ for suspending Sanusi after he read the report.
    I am very certain that PT has realised the negatve reaction to Sanusi ny NIgerians if they read the report, but Gid pass una, Some Newspapers have published it Already

  • Bush

    Sanusi knew this report will be leaked soon and his holier than thou attitude will be rubished forever. That was the reason he raised the alarm to make it look like he his been persecuted for the alarm he raised. In a developed nation, Sanusi will never be taken seriously or seen as a credible person after he first allege that 49 billion was missing, and later said it was 12, and now he said it is 20. He shows the man does not even know his job. It is a pity some people have taken side brushing the truth aside.

  • zubairu usman

    If the aforementioned report is anything to write home about, and his ‘the immediate past CBN Gov; on vocation’, then two wrong can never make a right. The fears is our Nigeria’s economy not to suffer or disconnects in the prevailing situation couple the National insecurities.

  • Eloka

    PT was quick to publish report on Okonjo, Ex Aviation Minister and GEJ and even had source in all its claimed investigation. I wonder why it neva saw this coming nor had published the FRCN’s report up till now! Or are they investigating how the report came about? Cos am sure its there next move…. Even the maner this report was written and it didn’t mk the Headline show great sadness and unwillingness to write it. Big Shame to this gossip page called Premuim Times newspaper. Deleting u from google and my web page very fast!!!!!!

    • Kalu Boniface

      Just show courage to own up when you sneak back to spy on what is truly going on via the PT pages…you hurt yourself, and no one, in the choice of a tunnel vision, my brother, from the other side of the Niger!

  • Usman

    what about the presidency? what are the financial misappropriations going on there and who will fire the president?

  • TheBitterTruth

    So where has this FRCN been all these while? Is this the twin agency of Federal Radio Corporation of Nigeria? Very sensible challenge from Bismarck – why not audit NNPC with all it’s allegations? And what is the duty of the Accountant General – unnecessary duplications in Government!

    • Bull shit. Did they audit all agencies before they focused on Oduah and hyped her case and got her removed. Fella, face the issue of gross corruption and incompetence in CBN and stop clawing for straws. The report was so weighty that it will be a surprise if the man is not jailed. On your ignorance about the FRC of N, it is palpable and pathetic. This is what we have been yearning – bite corruption hard.

  • Efe1

    I did not know that there is some agency called financial reporting council of Nigeria! Was it created last week just to get rid of sanusi or why has it not featured in any of the massive corruption that wreck the backing sector before sanusi came on board?

    • emmanuel

      It shows how shallow you these Hausa Fulanis are. I have always imagined how unschooled you were through the comments you make.

      It is partly why we insist that your people lack leadership depth, yet you want power handed to you. A frontline HF commentator like you do not know that the FTCN exist?

      Of course you guys Are less interested in any agency were money is not fetched like water. I pity your ignorance!8

      • emmanuel

        FRCN I meant

  • Ikechukwu_67

    Suddenly there is a ‘very serious’ agency of Nigeria called “financial reporting council of Nigeria”.Hmmm!!! This is funny….’finish Sanusi by all means is a task that must be done. ..These guys are funny..Please let’s know the report on other institutions now…where is the 20 billion dollars? Where is the money? No matter what you are trying to achieve in diversion, where is the money?

  • Candid View

    Mr. President has taken a wonderful step in the right direction by looking at the financial operations and management of the CBN. If what the FRCN has unearthed was done without bias I can not see what all the wolf cry in some quarters is all about. If Sanusi is truly culpable of those serious allegations he should be made to face the full weight of the law. I am of the opinion that Mr. President should not stop at this but to beam his search light at organization such as NNPC, Ministry of petroleum, FCDA, etc to stop the insinuations that what the presidency is doing is just a vendetta and that there is a cover up agenda on the part of Mr. President.

  • ejiofor

    Nations with true leaders of conscience in some of the great and sanely governed countries will remain in throne while security of life and right to life for almost all the subjects under their rule is not guaranteed. True leaders will resign, go back to drawing board, inquire and find out how, when and where they have got things wrong. Reverse is the case here, our power intoxicated leaders remain on the throne leveraging on blood of their subjects being sacrificed in their hundreds daily. Enough is enough we need new brains, new ideas from new generation to bring about the true. There is nothing to transform from over recycled material most of our so leaders have been over recycled, we need a break from the unhelpful and fruitless transformation promises. GOD help the good but powerless Nigerians.