The suspension of Godwin Emefiele, Central Bank of Nigeria (CBN) governor from office has elicited positive and negative comments from members of the public.
President Bola Tinubu on Friday suspended Emefiele following ongoing investigation of his office and the planned reforms in the financial sector of the economy.
Consequently, the Department of State Services (DSS) has reportedly arrested and put Emefiele in its custody.
Also read: DSS Arrests former CBN Governor Emefiele
Despite the suspension, he is still the CBN Governor pending his removal under the CBN Act.
Recall that Sanusi Lamido Sanusi was equally suspended from office by the Jonathan administration.
Section 8 (1) of the Act provides that the CBN Governor is ‘appointed by the President subject to confirmation by the Senate on such terms conditions as may be set out in their respective letters of appointment.’
Section 4 of the Act establishes a Board of Directors while Section 7 states that the CBN Governor shall be answerable to the Board for all his acts and decisions.
Section 8 (4) of the Act further states that the CBN Governor shall appear before the National Assembly at semi-annual hearings on the activities of the bank.
Rivers State ex-Governor, Nyesom Wike, has hailed President Bola Tinubu’s suspension of Godwin Emefiele as the Governor of the Central Bank of Nigeria (CBN).
Reacting to the development, Wike who was one of the critics of Emefiele’s policies, especially the Naira redesign, described the President’s decision as bold and timely.
The former Rivers State Governor also commended President Tinubu for approving uniformity in the retirement age and pension of judicial officers in the country, according to a statement by his media team.
He said the President’s action will introduce a new lease of life to the nation’s judiciary.
Wike noted that he and other G5 members are impressed that the President is showing “focused and exemplary leadership that will lead the county to prosperity.”
Uche Uwaleke, professor of capital market at the Nasarawa State University Keffi, said the suspension of Godwin Emefelie was long foretold. But, this announcement caught not a few by surprise.
The President cannot sack the CBN Governor, but he can suspend which is what the President has done, he said.
“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.
”To be fair, Emefelie, 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,” Uwaleke said.
“I think the Federal Government should let the office be vacant until there’s a realignment of the CBN’s role in our overall economic management. Mr Emefiele stretched the powers of that office beyond its limits and did abuse the office at the expense of the ordinary man. The Government should focus on a holistic review of CBN first before appointments,” said Eben Joels Esq.FCA Country Leader of RSM international correspondent firm Stransact.
Inibehe Effiong, human rights lawyer tweeted ‘‘Godwin Emefiele corrupted the CBN and made nonsense of our exchange rates and forex market. The fiscal and monetary policies of the CBN under him did not help the country. However, Mr Tinubu cannot remove him by virtue of Section 11 of the CBN Act without recourse to the Senate.
‘‘I’m aware of a subsisting judgment of the Federal High Court in Sanusi’s case, where it was held that while the President cannot remove the CBN Governor unilaterally, he can exercise disciplinary control over him, which includes suspension. That judgment is the law on the issue.
‘‘My view is that since the CBN Act does not envisage the suspension of the Governor by the President, and given the need for institutional independence of the CBN which cannot be guaranteed without security of tenure of the governor, the President shouldn’t be able to suspend.
‘‘This is, however, my personal view and is subject to the subsisting judgment of the Federal High Court. As a citizen, I do not see Emefiele as a fit and proper person to lead the CBN. He should render account of his stewardship and be thoroughly held accountable for his misdeeds,” the Akwa Ibom-born lawyer stated.
For Abiola Rasaq, former Economist and Head, Investor Relations at United Bank for Africa Plc, “I think the suspension of the governor may not be unrelated to allegations against his office relating to some policy reforms and operations of the apex bank.
“Recall, some months ago, there was a dramatic event at the CBN bordering on investigation of the office of the Governor, which took the intervention of the Presidency to douse. I believe the new administration would like to have a reset, especially as economic reform was a major item on the manifestos of President Tinubu, including reform of the foreign currency management.
‘‘The leadership of the CBN over the past 9 years does not believe in the liberalisation of the FX market, contrary to the orientation of the Tinubu administra9tion which seeks furth3r liberalisation of the FX market to block leakages and enhance the transparency of the FX market in a way that should stimulate FPI and FDI into the economy.
“I would expect that the Acting CBN Governor would serve through the remaining months of the current tenure whilst we await the announcement of the next Governor, who expectedly would have a fine balance of market orientation, with some adaptation of regulatory controls that should keep markets at comfortable equilibrium,” Rasaq said.
A lawyer and former member of the regulatory agency, said, “not a good precedent. No one will cry for Emefiele but what about the next guy who is good. Maybe I’m biased as a former regulator but I really think even ejecting bad actors should follow good practice. The Office of the President has moral authority and it should be used. Call him and tell him to write a letter requesting to go on leave.
The press release referred to an investigation. First we’re hearing of this? Investigation of what? By who? Shouldn’t CBN’s Board of Governors be the entity announcing his stepping aside, if there is some kind of investigation ongoing?
“Process matters. When Sanusi was “suspended” via a dubious exercise of presidential authority, the people who are now clapping were the same ones who said regulatory risk had increased.
Founder of a consulting firm who has advised financial companies said, “Sanusi was suspended too.
Yes, good optics. Half the battle is psychological and perception management. Investors and even global bankers are going to heave a sigh of relief. Certainly I have received texts from abroad to confirm and then with a dancing emoji in response. This is what BAT has been achieving so far- Taking the seemingly tough decisions upfront. Strategy- let’s put all the shit in one basket once and for all, face the music and get on with it.”
An entrepreneur with businesses in technology and agribusiness, said, “While applauding the decisive move on this matter, we should advise that the new administration follows due process to encourage compliance with the rule of law, overall.
“A thorough investigation is necessary to determine what happened and how to avoid such in future.
“Maybe this route was chosen because Senate approval is required to remove a CBN governor.”
