· Sanusi says president shouldn’t be petroleum minister, insists NNPC must account for dollar inflows
· Opposes removal of AMCON levy
· Declares banking sector regulation a necessity
· Chike-Obi: era of regulations without consultation should end
· Cardoso: regulation key to sound financial system, reduction of operational excesses
THISDAY
President Bola Tinubu yesterday assured that every commitment by his administration towards resolving foreign exchange (FX) backlogs through injection of funds into the market would be fulfilled.
Speaking at the opening of the 2023 Bank Directors’ Summit in Abuja, Tinubu said funding of liquidity in the FX market, even though a short-term solution, remained critical for the economy at the moment.
The summit was organised by the Bank Directors Association of Nigeria (BDAN), with the theme, “Emerging Issues: Navigating the Complex Balance Between Regulation and Compliance.”
In his remarks, the 14th Emir of Kano, Muhammadu Sanusi II, said the idea of the president doubling as petroleum minister was not good enough, as it hindered constructive criticism of the oil industry.
Nigeria has adopted the petroleum minister’s role for the president as an unwritten tradition since the inception of the Fourth Republic in 1999.
But Sanusi said that was bad for the industry that formed the mainstay of the country’s economy, as it created a situation where, “Nobody can talk; they say you are attacking the president.”
Commenting on the current fiscal and liquidity change, Sanusi doubled down on his call on the Nigerian National Petroleum Company (NNPC) Limited to give account of the dollar inflows from its operations.
The former Governor of Central Bank of Nigeria (CBN) also rejected calls for the removal of AMCON levy. This followed a request by Chairman of BDAN, Mr. Mustafa Chike-Obi, that the federal government should put a stop to the AMCON Levy because it had exerted heavy cost on the industry.
The incumbent Governor of CBN, Mr. Olayemi Cardoso, said regulations were crucial for maintaining compliance and curtailing excesses in the banking sector.
Tinubu, who was represented at the summit by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, insisted there was “no reason to feel that the indications that were made earlier had changed”, adding, “It just takes time.” He said the government was doing everything in its power to try to attract funds that would shore up liquidity in the FX segment.
There had been concerns by stakeholders that the government appeared to have reneged on its earlier commitment to inject between $7 billion to $10 billion into the FX market to clear the existing backlogs that impaired investors’ confidence in the economy.
But Tinubu said it was only a matter of time before short, medium and long-term funds would be mobilised across the spectrum.
He stated that overregulation of the banking industry could be counter-productive and stifle innovation, and added that there was need to strike a balance between regulation and overregulation.
The president said, “The regulator must partner with the industry to promote innovations that drive financial access, and banks must embed integrity and transparency into our culture and technology systems.”
Sanusi, in his own comments, said the concept of the president doubling as petroleum minister was not a good idea, stressing that it hinders constructive criticism of the oil industry.
He also emphasised the need for NNPC to give account of dollar inflows from its operations, querying, “Where are the dollars? Ask NNPC.”
