Abba Hamisu Sani
Africa-Press – Nigeria. The decision of Tinubu’s government to suspend the Apex Bank chief executive is not unexpected but form part of the new administration’s critical decisions as the government made the announcement on Friday night 9th June 2023.
This act of the new administration comes at a time when the majority of Nigerians are in hard economic condition due to the fuel subsidy removal even though it was a decision expected by many Nigerians as the President Tinubu and his campaign team complained bitterly against the CBN policy of currency redesigned towards the February Presidential election.
Tinubu the then Candidate of All Progressives Congress( APC) agitated that the CBN governor’s action was targeted against him.
Even though the Tinubu’s government said that the reasons for suspending the Apex Bank governor is sequel to the ongoing investigation of his office and the planned reforms in the financial sector of the economy.
The suspension of the CBN governor
President Bola Tinubu has suspended the Central Bank Governor, Godwin Emefiele, from office immediately.
This was revealed on Friday 9th June (2023) in a statement by Willie Bassey, Director of Information at the office of the Secretary to the Government of the Federation.
Mr. Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), who will act as the Central Bank Governor pending the conclusion of the investigation and the reforms.
Emefiele headed CBN under two Presidents
The suspended CBN governor assumed office in 2014 succeeding Sanusi Lamido Sanusi, who was equally suspended from office under controversial circumstances by President Goodluck Jonathan a few months before the expiration of his tenure and he was reappointed for the second term by the immediate past administration of President Buhari.
Before his appointment, Mr Emefiele was the Group Managing Director of Zenith Bank Plc.
Since assuming office in 2014, the suspended CBN chief has faced criticisms among Nigerians due to his management of the economy, his politics, and the apex bank’s controversial policies.
During his tenure, the Nigerian currency, the naira, has experienced a significant decline, currently trading at over N750 per dollar in the parallel market and N469.50 per dollar at the spot market as of Thursday, the lowest it has ever traded on the Investors and Exporters (I&E) window.
The apex bank, under Mr. Emefiele, has equally had troubles containing the nation’s inflation rate, which stood at 22.2 per cent in May, according to the nation’s statistics bureau.
The provision of the Central Bank of Nigeria’s Act
According to the CBN Act, The government is prohibited from firing the governor or members of its Board but has the right to appoint them with approval from both houses of the National Assembly.
The CBN Act further states that criminal offenses and mental health conditions can result in the CBN governor’s termination of appointment.
“The governor, deputy governor or director shall cease to hold office in the bank if he becomes of unsound mind o, owing to ill health, is incapable of carrying out his duties, is convicted of any criminal offense by a court of competent jurisdiction, except for traffic offenses 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.” The 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 practicing 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 governor, but it is dependent on lawmakers backing.
“The CBN governor can be removed by the president provided the removal shall be supported by two-third majority of the Senate,” the Act added.
Suspension long overdue
Professor Uche Uwaleke of the Nasarawa State University, is an economic analyst He said the suspension of Emefiele was long foretold.
“The president cannot sack the CBN governor, but he can suspend him, which is what he has done.” Recall that Mr.Sanusi Lamido Sanusi was equally suspended from office by the Jonathan administration. This suspension will mark an end to a turbulent era. “Godwin Emefiele will be remembered for implementing big ideas, such as the Anchor Borrower Programme, the RT200, the eNaira and a raft of interventions which helped to stimulate the economy during periods of economic recession” he said.
To be fair, Emefiele, to a large extent, succeeded in ensuring financial sector stability going by the prudential ratios. His forex demand management policies, especially the 41 items not qualified for forex, promoted import substitution, conserved external reserves and ensured relative stability in exchange rates. It would be unfair to blame him for the current high inflation rate since most of the causative factors are beyond the control of the CBN.
“On the flip side, he will also be remembered for the currency redesign exercise which didn’t go down well with Nigerians, and the CBN Ways and Means which grew astronomically during his tenure.
“His greatest mis-step was his attempt to join the list of presidential candidates. All said, I think he deserves some rest now,” the economist added.
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