Prince Anthony Olusegun Olatujoye, legal icon and one of Nigeria’s foremost banking and financial law experts, in this
interview with steve ogwu-chinuwa bares his mind on the need for the central bank to be independent/autonomous as well as on other national issues. Excerpts:
QUES: COULD YOU PLEASE TELL US A BIT ABOUT YOUR SELF, PARENT, SCHOOLS ATTENDED AND YOUR OVERVIEW OF THE SOCIO-POLITICAL SETTING OF YOUR IMMEDIATE ENVIRONMENT WHEN GROWING UP.
ANS: Thank you very much Steve, l am Prince Anthony Olusegun Olatujoye. I hail from Ode-Erinje in Okitipupa Local Govt. Area of Ondo State, South West Nigeria. I had my Primary School education at the Cherubim and Seraphim primary school, Ode-Irele Okitipupa Division and later moved to a Catholic School, Akotogbo, which was within the Divisional Area. After my primary 5 at the Catholic school, I left for Okitipupa where I completed my primary school education as best graduating Pupil at St John’s Catholic School. I was admitted into the famous Methodist High School, Okitipupa (a.k.a. Mehisco Varsity) for my Secondary School education.
After a stint at the Federal Ministry of Finance – (Accountant-General’s Office) Lagos as a Clerical officer, I proceeded to the prestigious University of Lagos in 1974 to study law. Now to your question on my parents and the overview of socio-political setting: As a growing and promising child, I saw the late 1950s as a better, crime free and friendly society. Village life for me was entertaining, with the number of folk-lore, parents, uncles and aunties reeled out after each day’s chores. I believe those stories helped to sharpen our intellect in later years. Father was a traditional village Ruler, mother was a successful farmer and philanthropist. I did not lack anything being the last child of Mama who had me at old age. I was the ‘Joseph’ of her own line father having four other wives to his credit! Siblings, half brothers/sisters all saw themselves as one as Papa wouldn’t brook any act of discord in his sprawling compound. Those were years Nigeria gave its best to us – free Awolowo primary school all over the South West zone otherwise called Western Region. Nigeria will regain its lost glory remains my prayer for my dear country now being ravaged by all manner of criminality.
QUES: LOOKING BACK WHAT WOULD YOU SAY ATTRACTED YOU TO STUDY LAW IN THE UNIVERSITY
ANS: Oh! That is a very good question. I would not say anything specific actually attracted me to study Law because I was a science student, but I had a colleague at the Federal Ministry of Finance who had so much passion for Law but unfortunately he is late now. We were both clerical staff but he had a wonderful passion for Law and honestly was able to convince me to study Law. So we sat down together, took the ‘A’ levels together, in 1973, after a year program at the extra-mural studies of the University of Ibadan, Ebute Meta, Lagos. While I was able to make the “A’ Levels within a year, he had to wait for another year. Though he did not study Law after all, he nevertheless rose to the rank of Assistant Comptroller-General, Customs Service before he died. So, there was no special reason or any personal attraction to read Law other than my late friend’s persuasion derived from his love for the “Lawyer’s Wig and Gown”. I had wanted to be a Medical Doctor but my good friend succeeded in persuading me to change. At that time in life, you hardly find someone to counsel you on career path other than your peers. I must express my indebtedness to Lawrence Okunola Ogun (late), the wonderful Finance Ministry friend who encouraged me to switch from medicine to law. May his Soul Rest In Peace.
QUES: YOU ROSE THROUGH THE RANKS IN THE LEGAL DEPARTMENT OF THE CENTRAL BANK OF NIGERIA. WITH BENEFIT OF HINDSIGHT, CAN YOU RECOLLECT SOME OF THE HIGH POINTS OF THESE MERITORIOUS YEARS AT THE APEX BANK.
ANS: In fact I spent 32years with the Central Bank of Nigeria. I came in as Assistant Legal Officer in 1979 and then rose to the rank of Director in 2003.I will say without any equivocation that the last 14yeras in the Bank threw up a lot of challenges. What with the number of banking reforms carried out by the different Governors that super intended over the affairs of the Bank during the said period! Global economic and financial challenges engulfed the Nigerian economy thus putting great stress on monetary and fiscal policies of Govt. Banking Laws and Regulations were rapidly formulated to address the shocks in the economy. The role of the Bank’s Legal Department where I served can better be imagined. A number of Decrees (now Acts) on banking services were rolled out during the military interregnum which called for proper implementation by the Bank’s management. The in-house counsel task in ensuring strict adherence to these laws cannot be over emphasized. When you work as Solicitor to Governors like Ola Vincent, the late Alhaji Abdulkadir Ahmed, Dr. Ogwuma, Dr. Joseph Sanusi, Professor Charles Soludo and the incumbent Governor – Mallam Sanusi Lamido Sanusi, then you can safely say that you like, Apostle Paul, have finished the race and your place preserved in the annals of central banking services. As senior management lawyer and later Director Legal Services, I participated and led in drafting the organic law of the Bank (CBN Act 1991& 2007), the Banks and other Financial Institutions Decree 1991(now Act), BOFI Bill 2007, the African Finance Corporation Constitutive Instrument; the AMCON Act 2010, the EFCC Act, E-transactions Bill; Ombudsman Bill, Nigerian International Financial Centre Bill; a number of Financial, Arbitration, Contract Practices etc, international Model Laws at the UN. Commission for International Trade Law (UNCITRAR) New York and Vienna. I must say that the drafting of the CBN Act 2007, AMCON Act 2010, BOFI Bill 2007 (pending before NASS) among others, remain memorable for me particularly, as Legal Adviser to CBN. I recall the presentation of the CBN and BOFI Bills 2007, to the Federal Executive Council for approval. Prof Charles Soludo, two Deputy Governors and my humble self defended the two Bills, at the FEC which provisions brought the Bank’s laws in line with international best practices. The independence of the CBN, so enshrined in the CBN Act 2007 which is now a subject of a fiery attack at the National Assembly, remains one great achievement for the Bank and indeed myself as Legal Adviser under whose superintendence the various sections of the Law were put together. May be, that was why Prof. Soludo had no difficulty in elevating me (albeit ‘honoris causa’) a “Senor Advocate of Nigeria” (laughter).
QUES: IN MAY THIS YEAR, YOU PRESENTED A MEMORANDUM ON A BILL FOR AN ACT TO AMEND THE CENTRAL BANK OF NIGERIA ACT, 2007 AT THE PUBLIC HEARING HELD, CAN YOU TAKE US THROUGH THE CONTENTS OF THE PAPER YOU PRESENTED
ANS: Yes, 28th May, 2012, precisely, that was the time the paper was presented.
Actually l was consulted by the Management of the CBN not only to do a paper on the proposed amendments to the CBN Act, but also to review the Bank’s memoranda on the said amendments before the Senate and the House of Representatives. The proposed amendments focused on the Bank’s financial autonomy, Board Composition, the place of the U.S dollar as a sub legal tender currency in Nigeria, etc.
The Senate Hearings on the amendments came up on the 28th May 2012 as said earlier. My presentation was therefore to refresh the memory of the distinguished Senators of the need to allow the CBN independence to be if only to fight inflation, meet international best practices and preserve robust monetary policy regime in Nigeria. I was however on all fours with the Senate on the issue of disallowing the use of the U.S dollar as a legal tender currency in our domestic economy. The presentation captured the need to preserve the Bank’s autonomy in order to allow for prompt resolution of distress in the banking sub-sector and also put Nigeria on the same pedestal with advanced and emerging economies in central banking matters. Any legislation which attempts to remove this kind of regime from the Central Bank is not helping the system at all. And that is the thrust of my argument before the Senate that the NASS needs to allow the CBN to maintain its independence so it can have the power to quickly address grave problems in the financial system, and also in formulating monetary policies which will stabilize the economy. And I dare say that such independence of the CBN does not in any way undermine the oversight functions of the National Assembly.
QUES: YOU PLAYED A LEADING ROLE IN THE CBN ACT 2007, WHAT MOTIVATED THE ACT IN THE FIRST PLACE.
ANS: As earlier stated, the purpose of the CBN Act 2007 is to strengthen the Bank generally and bring it at par with other Central Banks both in the emerging and advanced economies, because the 1991 CBN Act did not give any measure of independence to the CBN to address very serious issues in the banking sub-sector. So the Management decided to enact the CBN Act 2007 by over-hauling the 1991 Act. The raison-d’être for the 2007 CBN Act is to give financial, monetary policy and personnel autonomy to the Bank.
QUES: WHAT IS THE SIGNIFICANCE OF CBN ACT 2007?
ANS: You see, in my presentation on the proposed CBN amendment Bill by NASS, I argued that it is rather too early to start amending the 2007 CBN Act. I still hold on to this position. The Central Bank has power to grant loans to distressed banks to enable them arrest grave financial situations which can lead to systematic failures. Such loans don’t need any appropriation by the NASS, contrary to the understanding of members of the Senate and the House of Representatives. I think the Assembly members realise the rather daunting significance of the 2007 CBN Act and the growing influence of Sanusi Lamido Sanusi in financial matters, so the need to bring CBN budget before them for appropriation. With respect, I believe the NASS is not speaking to what other Central banks uphold in their organic laws on independence. It seems clear to me that the 2007 CBN Act is a giant leap from backwardness to civilized norms and practices of Central Banks.
If you are talking about financial autonomy, the Central Bank should be able to approve its budgets. But the CBN is not the Alpha & Omega as far as central banking issues are concerned because at least twice a year, the Governor of the Central Bank (and the Management) is expected to meet with the National Assembly (and indeed the President) on the affairs of the Bank, and in my paper which you just mentioned l even suggested that there should be both formal and informal engagements with members of the NASS so that the CBN can carry them along in all banking and financial matters being carried out by the Bank. This is to arrest any communication gap between them. So CBN does not need to wait until the National Assembly suggests/proposes to amend the law before the Bank’s policies and activities are communicated to Parliament. That was why the N620 billion loan granted to some 8-9 banks in 2009 by the CBN received condemnation by NASS. Having passed the CBN Act in 2007, the NASS is well aware of the powers donated to the Bank statutorily and wouldn’t have sought to remove such powers but for the said communication gap! So it is not strictly a case of failure of Legislators to understand the fundamentals of central banking and indeed the economy but their desire to be carried along in matters touching and concerning the implementation of laws passed by them. If I am right on this, then let me salute our Distinguished and Honourable members of the National Assembly. I must however add that CBN at times of banking failure cannot and should not be expected to wait for Parliamentary intervention before taking action. A minute delay may run the economy aground. Consequently the Legislators and CBN management should be on the same page in growing the economy. Permit me to reiterate that the greatest thing that has happened to the Financial System and indeed the Nigerian economy, in recent times, is the enactment of the CBN Act 2007. I will not easily forget the contributions of some of the leading members of the Federal Executive Council, to wit – President Obasanjo, Bayo Ojo (AGF); Ngozi Okonjo-Iweala (Finance); Oby Ezekwesili; El-Rufai; and the CBN delegation – Prof Charles Soludo, (Governor), Dr. S. Usman, Pastor Tunde Lemo (DGs) and my humble self – Prince Anthony Olatujoye (Legal Adviser), during the heated but rewarding discussions on the Bank’s independence and other issues when the CBN and BOFi Bills were laid before the Council. I cannot answer your question fully on the significance of the 2007 CBN Act, without saying a word on the developmental role of the Bank. S.34 CBN Act empowers the CBN to play banking and financial role in the development of the Nigerian economy. So when the CBN intervenes in Agric development, Aviation, SMEES, etc in pursuance of S.34 of its Act, every good thinking Nigerian should applaud, rather than demonise, the Governor and his team. The Legislature had this pivotal role of the Bank in mind in enacting the 2007 Act.
QUES: WHAT AMENDMENTS WOULD YOU RATHER RECOMMEND?
ANS: I think the Central Bank did a lot of work on the Act because the Central Bank Governors who I had the rare opportunity to work with – Dr. Joseph Sanusi, Prof. Charles Soludo and the incumbent Governor – Lamido Sanusi designed a number of policies which were meant to bring sanity to the financial services industry. All that remains is for these policies to run in a manner to ensure that Deposit Money Banks and other financial institutions are supervised in strict accordance with the provisions of the Act and other laws and regulations. Since you ask for amendment to the CBN Act, I will ask that the Fiscal Responsibility Act be made subject to the CBN Act.
QUES: YOU LEFT THE CBN, YOU WENT ON TO SET UP THE DIFIGLAND CONGLOMERATE. AS THE MANAGING PARTNER, CAN YOU TELL US WHAT THE OUTFIT IS SET OUT TO ACHIEVE AND WHAT YOUR AREAS OF SPECIALIZATION ARE?
ANS: Thank you, I left CBN and as a lawyer of 35 years post call, I thought it was unnecessary for me to sit down at home and be reading newspapers, playing local politics as a Prince, so I decided to establish the Difigland Partners Law Firm to help in the development of Law, by bringing together colleagues who are familiar with banking laws and Practice. That is precisely why I set up the law firm so we may be able to enhance the robustness of the financial system. So if you look at our profile you will find that we have four departments which are geared to render assistance to financial institutions, governments and the general public. We have a training outfit, the purpose is to enable us train lawyers and bankers in order to enable them tap from my 32years experience with the Central Bank.
QUES: THE PLEA BARGAIN SYSTEM WHICH IS GENERATING CONTROVERSY, WHAT IS YOUR TAKE ON THIS?
ANS: Well, I have said it before, and wish to repeat that I do not have any serious issue with a system that encourages “plea bargain”. Though not particularly known to our Jurisprudence, here is a process where an offender is ready to forfeit say, a high percentage of proceeds of crime, arising from corruption and other criminal activities. He makes a plea of guilt and allows the court to pronounce appropriate punishment, including recovery of money stolen as, for instance, head of government or any other officer in the public and private sectors.
The purpose is to see that such offenders do not walk away with their loots after serving out terms of imprisonment. The Nigerian concept of plea bargain looks a little worrying. But when you consider the Ibori trial in London, you will find the essence of plea bargain under a robust criminal justice system.
The CBN enjoys its own form of plea bargain under section 65(1) of BOFI Act, 1991 (as amended), where the Governor is empowered to compound offences committed by errant banks and their officials. If properly crafted in our criminal justice system, plea bargain backed by an incorruptible judiciary, has a lot to offer.
QUES: WHAT IS YOUR TAKE ON THE FUEL SUBSIDY SCAM
ANS: I think every Nigerian should be happy today that there are positive results coming from recent investigations conducted by the Senate, the House of Representatives and indeed Government on the fuel subsidy scam. But for the House of Representatives, we would not be where we are today as far as the issue of fuel subsidy is concerned. The outcome of the investigation, appears in my view, as one of the greatest things that has happened to the economy. You now have a detailed investigation committee Report among others that was able to identify N392 Billion loss from PMS importation. Personally I would say that every effort should be made to see that those who have been identified as beneficiaries of the scam should be properly prosecuted and made to refund any amount adjudged stolen by them. But the issue of corruption (alleged between Otedola and Farouk ) should not be allowed to override the outcome of the House of Representatives findings on the scam.
I move that all hands must be on deck to rid the country of corruption. It is heart-warming to find that Mr. President is battle ready to fight corruption so we should all join hands with him in this battle. You will agree with me that corruption is a canker- worm that has eaten deep into our Social/Political fabrics. There is therefore a compelling need for Government to assemble articulate Lawyers to prosecute the fuel subsidy suspects. Nigerians, I must say, are also interested in what becomes of the Otedola/Farouk Lawan corruption Saga.
QUES: THE ISSUE OF SANSHIP YOU MENTIONED IN AN EARLIER CONFERENCE, PEOPLE OF YOUR CALIBRE SHOULD BE HONOURED WITH SANSHIP.
ANS: This is a way to honour lawyers who have impacted positively in law development in Nigeria. But the honour is bestowed only on private Legal Practitioners, not on those of us who found our ways into the public service as legal advisers and who can hold their own in the quest for law development.
The minimum requirements for conferment of the honour on lawyers are contained in the Legal Practitioners Act. But some of us who did not go straight into private practice but have contributed immensely to the development of the law should, I dare say, be recognized. There should be a way of identifying and recognizing in-house lawyers for this honour. For instance, professors of law who write books and teach law are elevated to the rank of Senior Advocates of Nigeria. It is a challenge to the Nigerian Bar Association and I think that at the appropriate time, lawyers who excel in public organizations should be honoured. Give it any name – Senior Solicitors of Nigeria, or whatever nomenclature deemed appropriate! Mind you, lawyers don’t write any exams before becoming Senior Advocates, so it is not a question of who had written and passed exams.
Yes, now I am in private practice and there is no reason why after some time I should not be given that honour. I say this because I have one of the best law offices here in Abuja, we have the structure, we have everything that it takes to help develop the laws.
QUES: SIR, WHAT IS YOUR ASSESSMENT OF THE NIGERIAN JUDICIARY?
ANS: I do not think that the problems of our judiciary are as monstrous as some people want us to believe. Though there are some challenges, but when you look at the totality of the structures on ground, you will find that we have a very good Judiciary and eminent Judges. Though some of them may be a little bit on the down side of things as far as integrity is concerned. Nevertheless, the Judiciary is doing very well, notwithstanding the recent misunderstanding between the former Chief Justice of Nigeria and the suspended President of the Court of Appeal. I want to say that Justice Ayo Salami was my Permanent Secretary when I was serving in the Ministry of Justice in Ilorin, Kwara State during my NYSC (1978) and I found in him a very wonderful personality and l don’t think he has changed from such personality. I have quite a number of my colleagues in private practice who speak well of him and l think that the Salami issue is something that can be amicably resolved. My Lord, the new CJN, should find a way of bringing government and the Judiciary together to resolve the impasse. I believe that we have a listening President who should be willing to put the quagmire behind us.