Dr. Kingsley Chiedu Moghalu, Deputy Governor of the Central Bank of Nigeria (CBN), has distance himself from Sanusi Lamido, the suspended CBN governor. Dr. Moghalu is the head of the Bank's Financial System Stability directorate at CBN. He is responsible for the regulation of banks and financial institutions, which entails the management of systemic risk, and the development of finance programs .
Dr. Moghalu in a exclusive interview with the British independent News said that the suspended central banker overstepped the mark. Moghalu is intellectually superior and have written many books on Nigerian economy and development . He is a renowned scholar and monetary policy expert that got his PHD from London School of Economic.
Below is the complete interview conducted by Independent UK:
Mr Sanusi had overstepped his authority.
Discussing the Sanusi affair in the sidelines of the Africa CEO Forum in Geneva, he told the Independent: "The lesson that can be drawn from it is the limits of central bank independence... There is a very thin line between central bank independence and... political posturing."
In support of President Jonathan's government, he said: "The president of Nigeria and the government of Nigeria have never in my knowledge interfered with the function of the central bank. And therefore I think we need to give them credit for respecting [its] independence."
He added: "The governor began to make very damaging public allegations against the government... allegations that have not been proven, after the president had sent him a presidential query about the finances of the central bank. The government has given a reason for the suspension and that was... to enable an investigation into the allegations against him."
Bizarrely preferring not to mention Mr Sanusi by name, he went on to say: "Somebody in the central bank was taking on an activist political role. That is not our function. Central banks over the world have clear functions and in your country [Britain] and any other civilised country I know that central bank governors operate within certain expectations and constraints and respect those expectations and constraints."
He added that the central bank had managed to contain the market fallout from the president's actions, pointing out that he and his fellow deputy governors were in agreement with Dr Sanusi's internationally well regarded position as an inflation hawk in favour of high interest rates to keep a lid on prices.
Finally, "Life is back to normal," as Dr. Moghalu reassured in the exclusive interview. This interview shows that the policy makers are not in uniformity on how to engage the executive branch of the government. Moghalu has been the conscience of the CBN and his intellectual honesty has been held in high value and esteem especially among international portfolio and money managers around the world.