- President Bola Tinubu has suspended the Governor of the Central Bank of Nigeria, Godwin Emefiele, citing ongoing investigations and planned reforms in the financial sector.
- The reasons for Emefiele’s suspension are believed to be related to issues including the handling of the naira redesign policy, a failed presidential bid, and policy mishandlings such as mismanagement of foreign exchange reserves and ineffective monetary policies.
- The Central Bank Act does not explicitly allow for the suspension of the CBN Governor during an ongoing investigation, raising concerns about the independence of the central bank.
Nigeria’s President Bola Tinubu has suspended the Governor of the Central Bank of Nigeria, Godwin Emefiele, with immediate effect.
This was disclosed in a statement by Willie Bassey, the Director of Information for the Secretary to the Government of the Federation. Part of the statement said:
- “President Bola Ahmed Tinubu has suspended the Central Bank Governor, Mr Godwin Emefiele, CFR, from office with immediate effect. This is sequel to the ongoing investigation of his office and the planned reforms in the financial sector of the economy.”
Mr Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), Mr Folashodun Adebisi Shonubi, who will act as the Central Bank Governor pending the conclusion of the investigation and the reforms.
Nairametrics understand that the Department of State Security Service (DSS) has also arrested Godwin Emefiele. However, the DSS came out to deny that they had arrested Emefiele.
Why Emefiele was suspended as CBN Governor
Whilst the official narrative of the government was that his removal was due to ongoing investigations in the office of the central bank, most analysts believe his removal may have been connected to a series of events that took place under his leadership as central bank governor in the last two years.
One of the major issues contributing to Emefiele’s suspension is believed to be his handling of the naira redesign policy. This policy aimed to enhance the security features of Nigeria’s currency and tackle the menace of counterfeiting. However, it has been marred by allegations of mismanagement and poor implementation, drawing significant criticism from both experts and the public.
Furthermore, Emefiele’s failed attempt to launch a presidential bid has added fuel to the fire. Speculations surrounding his political ambitions raised concerns about his dedication to his role as CBN Governor. Critics argue that his focus on personal aspirations may have hindered his ability to effectively carry out his duties, eroding confidence in his leadership.
The investigation into Emefiele’s office has shed light on a range of policy mishandlings and controversies. These include mismanagement of foreign exchange reserves, ineffective monetary policies, and inadequate supervision of the banking sector. These revelations have further heightened calls for transparency and accountability within the country’s financial system.
What the law says about the suspension of CBN Governor
Section 11 of the Central Bank Act 2007 defines the conditions upon which a central bank governor can be removed from office. According to the act the president has the power to terminate the appointment of a central bank governor if he gets two-thirds majority of the Senate. He can also be removed if he is convicted of a criminal offence by a court of competent jurisdiction for traffic offences.
- “The Governor, Deputy Governor or Director shall cease to hold office in the Bank if he becomes of unsound mind or, owing to ill health, is incapable of carrying out his duties: is convicted of any criminal offence by a court of competent jurisdiction except for traffic offences or contempt proceedings arising in connection with the execution or intended execution of any power or duty conferred under this Act or the Banks and Other Financial Institutions Act.” CBN act states.
- The Governor can also be removed if he “is guilty of a serious misconduct in relation to his duties under this Act; disqualified or suspended from practising his profession in Nigeria by order of a competent authority made in respect of him personally; Becomes bankrupt.”
- The CBN Act also gives the Presidency power to terminate the appointment of the CBN but it is dependent on lawmakers’ backing.
“The CBN Governor can be removed by the President, Provided that the removal of the Governor shall be supported by two-thirds majority of the Senate praying that he be so removed.”
None of these provisions allows the president to suspend the CBN Governor over an ongoing investigation suggesting that the independence of the central bank may be threatened.
President Goodluck Jonathan also suspended the former CBN Governor, Sanusi Lamido Sanusi in 2014 paving the way for Emefiele to be central bank governor.