Joseph Oladele Sanusi
Encyclopedia
Chief Joseph Oladele Sanusi (born 24 September 1938) is a Nigeria
n chartered accountant who was Governor of the Central Bank of Nigeria
from May 1999 to May 2004.
, Nigeria.
He studied at South-West London College and Kingston College of Technology, England
from 1962 to 1965, qualifying as a Chartered Accountant. He became a member of the Institute of Chartered Accountants of Nigeria
(ICAN) in 1969, and became a fellow of the Nigerian Institute of Bankers in 1987.
(1978–1979), Executive Director, Monetary and Banking Policy (1979–1984), and Deputy Governor (1988–1990).
Sanusi left the CBN to become Managing Director and Chief Executive of United Bank for Africa
(1990–1992), then Managing Director and Chief Executive of First Bank of Nigeria
(1992–1998).
He was also Vice Chairman of Nigeria Merchant Bank and Chairman of Banque Internationale du Benin.
Sanusi was picked as a safe and conservative banker. He quickly introduced foreign exchange controls in an effort to reduce the drain on foreign reserves which had fallen from over $7 billion to under $4 billion in the last two years, and to defend the Nigerian naira
. Oil revenues, the primary source of foreign exchange, had dropped below the level needed to cover basic requirements. The business community was hostile to the efforts to prop up the currency, believing that devaluation coupled with exchange market reform was necessary.
Speaking in Washington, DC in April 2001 as chairman of the G-24, Sanusi expressed concern about the poor prospects for the world economy, particularly as it affected developing countries. He called for greater access to concessionary funding for these countries, and spoke out against protectionist measures by developed countries such as subsidies, countervailing duties and other restrictions to trade, particularly in agricultural products. He recognized the value of international codes and standards, but asked that their enforcement take into account levels of development in each country. He called for realistic and simple conditionality rules to recognize the realities of national constraints.
In February 2002, Sanusi issued a notice revoking the license of Savannah Bank
, saying the bank did not have enough assets to meet liabilities and did not comply with CBN obligations, and that the regulators had prevent further deterioration. The Nigeria Deposit Insurance Corporation
took over as liquidator, sealing the bank's offices. The matter dragged through the courts, with the bank's owners eventually being awarded damages of N100 million in February 2009.
In August 2002, Sanusi announced that Nigeria was suspending payments on some of its $33bn foreign debts and was trying to reschedule payments. He blamed the problem on falling oil revenues and failed privatisation plans.
Sanusi discussed Nigeria's debt in an opening address at a monetary policy forum in May 2003. He pointed out that debt had risen from 1% of GDP in 1960 to 16.2% in 1980 and 83.6% by the end of 2002. Federal government borrowing from the CBN was causing inflation and exchange rate problems, crowding out private borrowers and thus damping growth. He recommended greater use of the long term capital market rather than the short-term money market, and much greater focus on productive use of the money borrowed to optimize return and avoid building up a problem for future generations.
In 2002, Sanusi was awarded the rank of Commander of the Order of the Niger (CON).
In May 2004, Sanusi voluntarily retired and handed over to Charles Chukwuma Soludo.
of Paris.
Other post-CBN appointments include Chairman of Standard Chartered Bank Nigeria, First Pension Funds Custodian, Santrust Securities, STI Consulting and Global Biofuels, and Director of West African Portland Cement and Marina Foods.
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
n chartered accountant who was Governor of the Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
from May 1999 to May 2004.
Background and qualifications
Sanusi was born on 24 September 1938 in Ogbagi-Akoko, Ondo StateOndo State
Ondo State, Nigeria was created on 3 February 1976 from the former Western State. It originally included what is now Ekiti State, which was split off in 1996. Akure is the state capital.-Government and society:...
, Nigeria.
He studied at South-West London College and Kingston College of Technology, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
from 1962 to 1965, qualifying as a Chartered Accountant. He became a member of the Institute of Chartered Accountants of Nigeria
Institute of Chartered Accountants of Nigeria
The Institute of Chartered Accountants of Nigeria is a professional accountancy body in Nigeria.It is one of the two professional accountancy associations with regulatory authority in Nigeria, the other being the Association of National Accountants of Nigeria .The relationship between the two...
(ICAN) in 1969, and became a fellow of the Nigerian Institute of Bankers in 1987.
Career
Sanusi worked first as an Accountant in England, then with the Board of Customs and Excise in Nigeria. He joined the Central Bank of Nigeria (CBN) in 1966 as a Deputy Manager. He became a Departmental Director in 1977, Chief Executive of the Securities and Exchange CommissionSecurities and Exchange Commission (Nigeria)
The Securities and Exchange Commission is the main regulatory institution of the Nigerian capital market.It is supervised by the Federal Ministry of Finance....
(1978–1979), Executive Director, Monetary and Banking Policy (1979–1984), and Deputy Governor (1988–1990).
Sanusi left the CBN to become Managing Director and Chief Executive of United Bank for Africa
United Bank for Africa
United Bank for Africa Plc is a public limited company incorporated in Nigeria in 1961 and headquartered in Lagos. It is one of Africa’s leading financial institutions offering universal banking to more than 7 million customers across 750 branches in 19 African countries and a presence in New...
(1990–1992), then Managing Director and Chief Executive of First Bank of Nigeria
First Bank of Nigeria
First Bank of Nigeria is a Nigerian bank and financial services firm.First Bank traces its ancestry back to the first major financial institution founded in Nigeria; hence the name. The current chairman is Dr. Ayoola Oba Otudeko, OFR...
(1992–1998).
He was also Vice Chairman of Nigeria Merchant Bank and Chairman of Banque Internationale du Benin.
Governor of the Central Bank
In May 1999 Sanusi was appointed Governor of the Central Bank of Nigeria by President Olusegun Obasanjo, serving until May 2004.Sanusi was picked as a safe and conservative banker. He quickly introduced foreign exchange controls in an effort to reduce the drain on foreign reserves which had fallen from over $7 billion to under $4 billion in the last two years, and to defend the Nigerian naira
Nigerian naira
The naira is the currency of Nigeria. It is subdivided into 100 kobo.The Central Bank of Nigeria is the sole issuer of legal tender money throughout the Federation. It controls the volume of money supply in the economy in order to ensure monetary and price stability...
. Oil revenues, the primary source of foreign exchange, had dropped below the level needed to cover basic requirements. The business community was hostile to the efforts to prop up the currency, believing that devaluation coupled with exchange market reform was necessary.
Speaking in Washington, DC in April 2001 as chairman of the G-24, Sanusi expressed concern about the poor prospects for the world economy, particularly as it affected developing countries. He called for greater access to concessionary funding for these countries, and spoke out against protectionist measures by developed countries such as subsidies, countervailing duties and other restrictions to trade, particularly in agricultural products. He recognized the value of international codes and standards, but asked that their enforcement take into account levels of development in each country. He called for realistic and simple conditionality rules to recognize the realities of national constraints.
In February 2002, Sanusi issued a notice revoking the license of Savannah Bank
Savannah Bank
The Savannah Bank is a Nigerian bank whose license was withdrawn in February 2002 and restored in February 2009 after protracted legal battles....
, saying the bank did not have enough assets to meet liabilities and did not comply with CBN obligations, and that the regulators had prevent further deterioration. The Nigeria Deposit Insurance Corporation
Nigeria Deposit Insurance Corporation
The Nigeria Deposit Insurance Corporation was established on 15 June 1988 to strengthen the safety net for the newly liberalized banking sector, following the recommendation of former Central Bank of Nigeria governor Ola Vincent...
took over as liquidator, sealing the bank's offices. The matter dragged through the courts, with the bank's owners eventually being awarded damages of N100 million in February 2009.
In August 2002, Sanusi announced that Nigeria was suspending payments on some of its $33bn foreign debts and was trying to reschedule payments. He blamed the problem on falling oil revenues and failed privatisation plans.
Sanusi discussed Nigeria's debt in an opening address at a monetary policy forum in May 2003. He pointed out that debt had risen from 1% of GDP in 1960 to 16.2% in 1980 and 83.6% by the end of 2002. Federal government borrowing from the CBN was causing inflation and exchange rate problems, crowding out private borrowers and thus damping growth. He recommended greater use of the long term capital market rather than the short-term money market, and much greater focus on productive use of the money borrowed to optimize return and avoid building up a problem for future generations.
In 2002, Sanusi was awarded the rank of Commander of the Order of the Niger (CON).
In May 2004, Sanusi voluntarily retired and handed over to Charles Chukwuma Soludo.
Later career
On 7 October 2004 he was appointed to the Board of Directors of Lafarge Cement Wapco, a cement manufacturing company in Nigeria owned by LafargeLafarge
Lafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. In 2010 the company was the world's second-largest cement manufacturer by mass shipped behind Holcim.-History:...
of Paris.
Other post-CBN appointments include Chairman of Standard Chartered Bank Nigeria, First Pension Funds Custodian, Santrust Securities, STI Consulting and Global Biofuels, and Director of West African Portland Cement and Marina Foods.