Nigeria's naira fell 1 percent to 166.35 against the U.S. dollar in volatile trading, a day after President Goodluck Jonathan suspended its outspoken Central Bank Governor Lamido Sanusi.
The naira opened at 164.90 to the greenback, traded for a short-period and rose to 169 before it shut down, dealers said. It is the biggest one-day swing since a December 2009 devaluation
Osaseye blog will attempt to detail the impact of Sanusi's removal on the economy for the next series of post up until 3 months. A good tree is made known by the fruit it bears.
The Central Bank governor who exposed billions of missing petrodollars has now lost his job after months of the much talked about suspension, earlier resignation or a possible sack.
President Goodluck Jonathan accused the respected and highly educated Lamido Sanusi of "financial recklessness and misconduct."
The West African nation's naira currency immediately weakened in response.
Last year Sanusi reported that $50 billion worth of oil sold by the state's Nigerian National Petroleum Corp. had not been paid to the government. The Senate Committee on Finance last week ordered an independent forensic audit into the missing money, now said to amount to about $20 billion.
While some members of the House declared the move as illegal and unconstitutional, others were of the view that it was in order.
Minority whip of the House, Hon Samson Osagie (APC, Edo) had brought the suspension matter before the members during plenary under Matters of Urgent National Interest where he described the suspension as “illegal” and “unconstitutional.”
Citing CBN Act 2007 as amended, the lawmaker queried the power of the president to take such a decision as the law does not provide for the president or any body to suspend the governor of the CBN.
“Only Section 11(7) of thenAct gives the President powers to remove the CBN governor subject to the approval of two-third majority of the Senate”, he noted.
"We condemn the suspension, because the President under the Constitution does not even have the right to depose the central bank chief. Only the National Assembly is authorized to do so," Musa, Chairman of an anti-corruption agency said in an interview.
Has the President gone too far? Has he made a reckless decision to fire one of Nigeria's best?