Article Summary
- The CPPE chief said President Bola Tinubu’s administration is at variance with the policy disposition of the CBN under Emefiele.
- He added that it is impractical to reform the apex bank and review some of its major policies with Mr Emefiele remaining in the seat as governor.
- Nairametrics revealed the investigation into Emefiele’s office has shed light on a range of policy mishandlings and controversies. These include mismanagement of foreign exchange reserves, ineffective monetary policies, and inadequate supervision of the banking sector.
The suspension of Godwin Emefiele as the CBN Governor should not come as a surprise as President Bola Tinubu’s administration is at variance with the policy disposition of the CBN under Emefiele.
This was disclosed by Dr Muda Yusuf Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE) in an interview reacting to Emefiele’s removal.
He added it would have been impractical to reform the apex bank and review some of its major policies with Mr Emefiele remaining on the seat as governor.
No Surprise
Dr Muda Yusuf said the suspension of Mr Godwin Emefiele as the CBN Governor is not a surprise, adding that the suspension showed:
- “President Bola Tinubu’s administration is at variance with the policy disposition of the CBN under Emefiele.”
- “The monetary and foreign exchange policy thrusts of President Tinubu’s administration are at variance with the policy disposition of the CBN under Emefiele.
- “President Tinubu was very clear in his inaugural speech about his resentment of some current CBN policies such as the multiple exchange rate and the Naira redesign policy.
House cleaning
He noted that the President had earlier hinted at a plan to “ clean house” at the CBN, citing that his plans for reforms would not have worked with Emefiele around, as it would logical that the CBN governor be advised to proceed on suspension, adding:
- “The president also hinted at a house cleaning plan for the CBN.
- “It is impractical to reform the apex bank and review some of its major policies with Mr Emefiele remaining on the seat as governor.”
- “The truth is that there is a major compatibility issue. The parting of ways was inevitable.”
Yusuf added that the brazen involvement of the CBN governor in partisan politics was an aberration and most unbecoming, adding that it was damaging to the credibility of the CBN and the reputation of the governor himself.
Why Emefiele was suspended as CBN Governor
The official narrative of the government was that his removal was due to ongoing investigations in the office of the central bank, most analysts believe his removal may have been connected to a series of events that took place under his leadership as central bank governor in the last two years.
Nairametrics reported that one of the major issues contributing to Emefiele’s suspension is believed to be his handling of the naira redesign policy. This policy aimed to enhance the security features of Nigeria’s currency and tackle the menace of counterfeiting.
However, it has been marred by allegations of mismanagement and poor implementation, drawing significant criticism from both experts and the public.
Furthermore, Emefiele’s failed attempt to launch a presidential bid has added fuel to the fire. Speculations surrounding his political ambitions raised concerns about his dedication to his role as CBN Governor.
Critics argue that his focus on personal aspirations may have hindered his ability to effectively carry out his duties, eroding confidence in his leadership.
The investigation into Emefiele’s office has shed light on a range of policy mishandlings and controversies. These include mismanagement of foreign exchange reserves, ineffective monetary policies, and inadequate supervision of the banking sector.
These revelations have further heightened calls for transparency and accountability within the country’s financial system.
What the law says about the suspension of CBN Governor
Section 11 of the Central Bank Act 2007 defines the conditions upon which a central bank governor can be removed from office. According to the act the president has the power to terminate the appointment of a central bank governor if he gets two-thirds majority of the Senate.
He can also be removed if he is convicted of a criminal offence by a court of competent jurisdiction for traffic offences.
- “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 about 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 a two-thirds majority of the Senate praying that he be so removed.”