THE Governor of Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi said yesterday that there is no other option in the circumstances than to print naira to save more ailing banks in the country
Addressing newsmen at the end of the 210th Monetary Policy Committee,MPC, meeting of the bank, Sanusi who stressed that CBN does not require any appropriation by the National Assembly for it to lend money to the banks as part of its statutory responsibilities, said as the lender of last resort, what it did was to create money in line with CBN Act which gave it the power to create and lend money “whenever the situation arises.”
According to him, the management team of the bank would today meet the Senate committee on Banking aimed at answering questions ranging from whether the bank has the right to lend money or answer to charges of improper appropriation of money to the five troubled banks, adding, “we will go and meet them today to tell us whether we need any appropriation to perform our statutory duties”.
Defending the injection of N420billion to save the banks, Sanusi noted that what the CBN did was not necessarily a bailout, but liquidity support and financial intervention to bring the financial industry back to a position where it should be.
The CBN governor who reiterated that on-going debt recovery efforts in these banks were to ensure that depositors and the banking industry were strengthened and not endangered, said that at the end of the day if any of the remaining eleven audited banks were found to be defective, the CBN will print naira to bail them out.
Sanusi, who said he was a human being and that the decision he took on the five chief executives was not personal, but for the entire banking industry, stated that each time he sees the former bank chiefs who were his friends being paraded on television like criminals, he gets worried.
“When I see them on television, it grieved me but it is a difficult thing , they have been my friends for many years, but they have broken the law and they must pay for it.”