Tinubu suspends Emefiele as CBN governor. Here’s what the law says about his removal
President Bola Tinubu, on Friday, June 9, 2023, announced the suspension of Godwin Emefiele as the Governor of Central Bank of Nigeria (CBN).
A statement by Willie Bassey, Director, Information in the Office of the Secretary to the Government of the Federation, said the suspension which is with immediate effect “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), who will act as the Central Bank Governor pending the conclusion of investigation and the reforms,” the statement added.
Emefiele’s suspension which has sparked mixed reactions on the internet is coming 11 days after Tinubu assumed office as Nigeria’s 16th President on May 29, 2023.
While some citizens believe the President did not follow due process in showing the Apex Bank governor the exit door, many who received the news with excitement believed it is long overdue following his many unpopular policies and actions, especially in the buildup to the 2023 general elections.
Emefiele, whose second term as CBN governor is expected to expire in May 2024, fell in the bad books of many Nigerians, especially the young citizens, with some of his policies which are believed to have had adverse effects on the economy. Some of the policies include his forex policies which made access to foreign currencies difficult for businesses and travelers, thereby stifling the process of tuition fees payment for many young citizens planning to study abroad, the ban on cryptocurrency trading and the Naira redesign policy which sparked unrest across the country and led to loss of lives and property, among many others.
His decision to also run for President in 2023 under the APC while holding tight to his seat as CBN governor also contributed to his negative image among many Nigerians who believe he introduced the Naira redesign policy to frustrate politicians after losing his bid to win the APC presidential ticket. Tinubu’s outburst at a campaign rally in Abeokuta, Ogun state, earlier in the year where he publicly accused the government of his predecessor of trying to frustrate his ambition with the Naira redesign policy, also gave credence to this notion.
Emefiele also ran into trouble with the DSS after the security agency accused him of funding terrorism and approached a High Court in Abuja for an injunction to arrest and detain him. The DSS application was, however, rejected by the court.
With Tinubu’s emergence as President, many Nigerians believed a change in the CBN leadership was imminent and Emefiele would be forced out of office before his term expires in about a year.
Can the President suspend the CBN governor? What is the process for the suspension of a CBN governor? Here’s what the law says:
According to Section 11 (2) of the CBN Act 2007, the Governor, Deputy Governor or Director shall cease to hold office in the Bank if he:
(a) becomes of unsound mind or, owing to ill health, is incapable of carrying out his duties;
(b) 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;
(c) is guilty of a serious misconduct in relation to his duties under this Act;
(d) is disqualified or suspended from practising his profession in Nigeria by authority made in respect of him personally;
(e) becomes bankrupt;
Paragraph ‘f’ which empowers the President to remove the CBN governor, however, states the condition under which the removal must be done:
It says the CBN governor shall cease to hold office in the Bank if he:
(f) is 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.
Subsection (3) further states that “The Governor or any Deputy Governor may resign his office by giving at least three months’ notice in writing to the President of his intention to do so and any Director may similarly resign by giving at least one month’s notice in writing to the President of his intention to do so.
None of these provisions of the law was followed in the suspension of Emefiele.
However, as it stands, it will not be out of place to say Nigeria does not have an active National Assembly as at the time Tinubu announced Emefiele’s suspension on Friday evening.
The tenure of the outgoing 9th Assembly expires on Sunday, June 11, and the 10th Assembly will be sworn-in on Tuesday, June 13, following its proclamation by the President.
Emefiele is not the first CBN governor to be removed from office. In 2014, President Goodluck Jonathan suspended Sanusi Lamido Sanusi as CBN governor after some of his damning corruption allegations against the government.
Emefiele was appointed CBN governor in 2014 after Sanusi’s suspension. Until his appointment, he was the Managing Director of Zenith Bank Plc where Nigeria’s current Vice President Kashim Shettima also worked before joining politics.
He became the first CBN governor to be reappointed for a second term after Buhari renewed his appointment in May 2019.
