This is sequel to the ongoing investigation of his office
and the planned reforms in the financial sector of the economy, according to a
statement on Friday by the Director of Information, Office of the Secretary to
the Government of the Federation, Willie Bassey.
According to the statement, Emefiele has been directed to
immediately hand over the affairs of his office to the Deputy Governor
(Operations Directorate), who will act as the CBN governor pending the
conclusion of the investigation and the reforms.
The CBN listed the Deputy Director, Operations Directorate,
as Mr Folashodun Adebisi Shonubi.
Unconfirmed reports emerged late on Friday that operatives
of the Department of State Services had arrested the suspended CBN governor.
But the spokesman for the DSS, Peter Afunaya, told one of our correspondents
that he could not confirm the arrest.
A top security source, who spoke on condition of anonymity,
told Saturday PUNCH that Emefiele would have been arrested during the
administration of former President Muhammadu Buhari.
He said, “Yes, expect that (his arrest) to happen. He would
have been arrested before but the administration of former President Buhari
protected him. He has many questions to answer.
“As a result of this, he won’t be allowed to either travel
out or sneak out of the country. So, we are looking for him.”
Emefiele, who was appointed the apex bank’s governor on June
4, 2014, was also at the centre of a storm in January 2023 when security
operatives attempted to arrest him over allegations of terrorism financing and
economic crime.
Section 11 of the CBN
Act, 2007 gives the President power to terminate the appointment of the apex
bank governor, but such must have the backing of lawmakers.
“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 removed,” the section stated.
The Act also states that the governor, deputy governor, or
director of the CBN can be removed if they are serving as a lawmaker or a
director of a bank.
“A person shall not remain a governor, deputy governor or
director of the Bank if he is a member of any federal or state legislative
house; or if he is a director, officer or employee of any bank licensed under
the Banks and Other Financial Institutions Act.”
The CBN Act further states that criminal offences 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 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,” the Act adds.
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.”
Emefiele’s ‘sins’
The introduction of the naira redesign policy by the
Emefiele-led CBN in October 2022 started on a controversial note as the then
Minister Finance, Budget and National Planning, Zainab Ahmed, kicked against it
barely 48 hours after it was announced.
Ahmed had stated that her ministry was not consulted and she
was not aware of the monetary policy.
The reaction generated tension and uncertainty until the
Presidency confirmed that Buhari approved the policy, which it said was to
manage inflation, combat currency counterfeiting and ransom payment.
Early January 2023, the CBN started a cash swap programme in
various local government areas to reach citizens in rural communities, who
complained of the unavailability of banks in their localities.
The initial deadline of January 31, 2023, set by the apex
bank for the old notes to cease being legal tender was moved to February 10, as
the country fell into hard times with both the old and new naira notes going
out of circulation.
The situation was compounded by fuel scarcity across the
country as Nigerians berated the policies of the government as ill-thought.
Tinubu, who was then the presidential candidate of the All
Progressives Congress, also slammed those behind the naira redesign, which he
said was targeted at his candidature.
While speaking in January during a campaign at the MKO
Abiola Stadium in Abeokuta, the Ogun State capital, Tinubu said, “Let fuel be
expensive, only they know where they keep it. Keep petrol, keep the naira, we
will vote and be elected. You may change the ink of naira notes. What you
expect will not happen. We will win.
“They said petrol will rise to N200/litre and N500/litre,
let your mind be at rest. They don’t want the forthcoming election to hold.
They want to scatter it but that won’t be possible.
“They thought they could cause trouble; they sabotaged fuel
but with or without fuel, with or without motorcycles and tricycles, we will
vote and win. This is a superior revolution.”
In February, the governors of Kaduna, Kogi and Zamfara
states took the Federal Government to the Supreme Court and urged it to declare
the naira redesign illegal.
Despite an initial order of the court for the policy to be
suspended, the CBN went ahead to announce that the old naira notes had ceased
to be legal tender at the expiration of the February deadline.
In March, the Supreme Court finally ruled that the old naira
notes remain legal tender till December 31, 2023, effectively ending the
controversies surrounding the matter.
Experts estimated the loss to the failed naira redesign
policy at N20tn as many called for the sacking of Emefiele. Many citizens died
during protests against the policy, while many commercial banks had their
facilities destroyed.
Prior to the naira redesign controversy, many Nigerians,
particularly members of civil society and the media, had called for Emefiele’s
sacking over his rumoured political ambition.
A group of friends had in May 2022 bought the N100m
expression of interest form for the presidential ticket of the APC for him.
This was followed by sponsored posts on various media
platforms advertising his candidacy.
Photos of hundreds of branded vehicles were also splashed on
social media, attracting widespread outrage.
Emefiele had subsequently instituted a suit against the
Independent National Electoral Commission and the Attorney-General of the
Federation and Minister of Justice over his eligibility to contest the APC
primary.
He asked the court to stop INEC from disqualifying him from
participating in the primary election of his preferred political party.
Suspension expected – Analysts
An economist, Mr Ade Dayo, said the suspension was expected,
adding that the Nigerian economy suffered under Emefiele.
He told Saturday PUNCH that the monetary policies postulated
by Emefiele made many Nigerian businesses shrank and gasped for air.
Dayo said, “It was expected that the new President would let
him go. See the gruesome way he (Emefiele) handled the naira redesign policy!
Many businesses were shut down during that period. All the pleas from
economists, analysts and social critics fell on deaf ears. He was fixed on only
doing his bidding.
“Whoever is going to take over after him should be one who
listens and is devoid of partisan affiliation. The office of the governor of
the CBN is not a political office.
“A thorough probe should be instituted and a competent
person made to man the position.”
Another economist, Mr Usman Musa, noted that the suspended
CBN governor did not handle the economic issues affecting the nation wisely.
He added that there were many accusations of partisanship
regarding Emefiele, but he failed to address the issue as he should.
Musa said, “The economy of this country suffered under
Emefiele. Surprise is the last thing I feel hearing the news of his suspension.
He should be thoroughly investigated, especially as regards the naira redesign
policy. Where are the new notes he said he printed?
“Emefiele completely failed in his duty. He did not
concentrate on his core mandate of price stability as the apex bank’s governor.
We are talking of an inflation rate of about 22.24 per cent or more and an
exchange rate nearing N800 per dollar. Who should be held responsible for all
these woes if not him?”
The Director and Chief Executive Officer, Centre for the
Promotion of Private Enterprise, Dr Muda Yusuf, said the suspension did not
come to him as a surprise.
Yusuf said the President had made it known during his
campaign that he did not agree with some of the policies of the CBN governor.
He said, “Emefiele came up with a lot of policies that have
not worked well for the economy and Tinubu singled out the exchange rate
management, the forex policy and expressed displeasure about the naira
redesign. He was very clear about his condemnation of it, and that the policy
was too harsh for the citizens.
“It was also clear that the policies of Emefiele were not
compatible with that of the President, so if this has happened, I will not be
surprised. Their monetary policy beliefs are fundamentally different.”
A policy analyst, Suraj Oyewale, said Emefiele’s performance
as governor of the apex bank had fallen below expectation, adding that many
Nigerians would be happy to see him leave office.
“The general consensus is that the performance of the
economy under Emefiele has been less than impressive, especially the naira
redesign policy, which was not well thought out. I’m sure many Nigerians will
be excited to see him leave,” he said
Oyewale, however, said it was the second time in 10 years
that a sitting CBN governor would be suspended by the President and feared that
the trend might “weaken the independence of the CBN.”
“Subsequent governors may become a pun in the hands of the
executive for fear of being sacked and will be unable to take tough decisions
that will favour the economy,” he added.
A lecturer and political analyst, Dr Ganiu Bamgbose, said
the President made a great decision by suspending the CBN governor, whom he
accused of holding the country hostage economically.
He said, “I think the President as the Commander-in-Chief of
the Armed Forces is at liberty to choose who is returning and whosoever he
wants in his space.
As a president, who is prepared to lead the country to
success, he could have seen what no one else sees. In this case, as the
Commander-in-Chief of the Armed Forces, he knows who is suitable for a post and
who is going to make his administration successful.
“Emefiele should have been relieved of the job earlier than
this. Isn’t it ridiculous that the CBN suddenly told us that there was no money
to sustain the change of currency, which brought so much agony and hardship to
the country about five to six months ago?”
A political analyst, Kamilu Fage, said it was surprising
that the President left the CBN governor in office for some time after the
swearing-in despite several infractions Emefiele committed prior to the
election.
“Given what Emefiele did with the scarcity of naira, I am
surprised that the President left him in the office till now given all he did
during the naira crisis,” he said.
However, a human rights lawyer, Inibehe Effiong, said the
suspension of the CBN governor was not in accordance with the law, adding that
Emefiele could not be removed by the President without recourse to the law.
He said, “It is quite a controversial issue. Ordinarily, by
virtue of Section 11 of the CBN Act of 2007, the cessation of office of the CBN
governor for misconduct on account of the decision of the President can only be
through removal, which has to go through the Senate and two-third of members
must give their concurrence before the CBN governor can be removed. That
statutory position is enshrined to guarantee the institutional independence of
the CBN.
“I personally believed that Emefiele should not remain in
office; he has committed several infractions, and I am not comfortable with the
way he led the bank; however, on the basis of law I do not think the President
can remove the CBN governor without recourse to the Senate.”
A Senior Advocate of Nigeria, Norrisson Quackers, said the
President had the constitutional right to give the directive, stating that the
suspension could not be questioned.
Quackers added that Emefiele had overstayed the five-year
statutory period he was supposed to use in office according to the CBN Act,
adding that Tinubu’s body language towards the suspension could eventually
result in a further dismissal of the governor.
An economist, Prof Sheriffdeen Tella, said Emefiele should
not see his suspension as shocking, having thrown the economy into domestic
shocks through inconsistent policies, some of which led to the death of some
Nigerians.
He said, “The suspension should not be surprising even to
himself. He has over time thrown the economy into domestic shocks through
policy inconsistency and summersaults without an apology to anybody, even to
the government he is embarrassing.
“The last ditch was the twin policy of cashless economy and
currency redesign that resulted in the death of Nigerians, collapse of
businesses and loss of faith in banking services.”
Suspension legal – Ozekhome
A Senior Advocate of Nigeria, Chief Mike Ozekhome, said
Tinubu had the right to suspend Emefiele, adding that the term suspension was
just a euphemism for dismissal.
He stated, “The President has all the right to suspend the
CBN governor despite the independence of the apex bank. He can do so under the
CBN Act. He is the overall boss and President of Nigeria.
“This is what we call the transient nature of power. Before
Emefiele, there was Sanusi. The position is not hereditary. He who has the
power to appoint can suspend. It is Tinubu’s right and prerogative to suspend
the CBN governor for any infraction. He acted in line with the law. It is not
illegal.
“Someone must have been appointed to act in his place so
there is no illegality there.”
Like Sanusi, like Emefiele
On February 20, 2014, President Goodluck Jonathan ordered
the suspension of the then CBN governor, Lamido Sanusi, weeks after he exposed
the alleged theft of at least $20bn by officials of the petroleum ministry.
Sanusi was suspended while on an official assignment to
Niamey, Niger Republic.
He later claimed to have ignored Jonathan’s directive to him
to resign because the reason for the directive was baseless.
He said Jonathan asked him to quit for allegedly sending
copies of the letter he wrote to the President to former President Olusegun
Obasanjo and the then Rivers State governor, Chibuike Amaechi.
The spokesperson for the then President, Dr Reuben Abati,
explained in a statement Sanusi was suspended because of reports by the
Financial Reporting Council of Nigeria claiming that the CBN governor had
engaged in “financial recklessness and misconduct” but did not identify any
particular financial crime.
Sanusi, who later became the Emir of Kano before he was
deposed, refused to back down on allegations that the Nigerian National
Petroleum Corporation and the then Minister of Petroleum Resources, Diezani
Allsion-Madueke, could not account for over $20bn of crude oil exports carried
out by the NNPC.
He was ordered to hand over to the most senior Deputy
Governor of the CBN, Dr Sarah Alade, pending the conclusion of investigations
into the alleged breaches of enabling laws, due process and the mandate of the
CBN.
In April 2014, he won a court case against the Federal
Government after he was detained and his passport confiscated by the Department
of State Services but did not return to the apex bank. -PUNCH
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