Godwin Emefiele, the governor of the Central Bank of Nigeria, has been immediately suspended by Nigerian President Bola Tinubu.
Willie Bassey, the Secretary to the Government of the Federation’s Director of Information, revealed this in a statement. The statement said, in part:
“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. Folashodun Adebisi Shonubi, the Deputy Governor (Operations Directorate), who will serve as the Central Bank Governor until the inquiry and reforms are complete, has been instructed to take over Mr. Emefiele’s affairs immediately.
Reasons for Emefiele’s suspension as CBN Governor
The government’s official explanation for his removal stated that it was a result of ongoing investigations at the central bank, but most analysts think it may have something to do with a number of things that happened while he was serving as governor over the past two years.
Emefiele’s management of the naira redesign strategy is said to be one of the main reasons for his suspension. With this policy, Nigerian currency’s security characteristics were to be improved, and the counterfeiting problem was to be addressed. It has, however, been tainted by claims of poor management and implementation, garnering harsh condemnation from both specialists and the general public.
Emefiele’s unsuccessful attempt to run for president has also fueled the fire. Concerns regarding his commitment to his position as CBN Governor were sparked by rumors about his political aspirations. His focus on personal goals, according to detractors, may have made it more difficult for him to perform his duties successfully, which would have undermined trust in his leadership.
A variety of policy disputes and mishandlings have come to light as a result of the probe into Emefiele’s administration. These include the improper handling of foreign exchange reserves, inefficient monetary policy, and insufficient banking sector oversight. These disclosures have increased calls for accountability and transparency in the nation’s financial sector.
What the law says about the suspension of CBN Governor
The criteria for removing a central bank governor from office are outlined in Section 11 of the Central Bank Act of 2007. In accordance with the statute, the president has the authority to revoke a central bank governor’s appointment if he receives a two-thirds majority in the Senate. Additionally, he may be expelled if a court with appropriate jurisdiction finds him guilty of a crime for driving offenses.
“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 clauses permit the president to remove the CBN Governor due to an ongoing inquiry that raises concerns about the central bank’s independence.
In 2014, former CBN Governor Sanusi Lamido Sanusi was also suspended by President Goodluck Jonathan, clearing the door for Emefiele to take over as governor of the central bank.
