FACT CHECK!!! Read What The Law Says About The Suspension Of CBN Governor Emefiele—The suspension of Mr Godwin Emefiele as the Governor of the Central Bank of Nigeria by President Bola Tinubu on Friday night has started generating mixed reactions among Nigerians.
While some are of the view that the President lacks the power to suspend the Governor of the CBN from office owing to the independence of the apex bank, others are of the view that the action of the President is in line with global best practices.
This is not the first time that the President of Nigeria will be suspending the CBN Governor from office.
President Goodluck Jonathan had in 2014 suspended the former CBN Governor, Sanusi Lamido Sanusi paving the way for Emefiele to be central bank governor.
But what is the position of the alw concerning the removal of the CBN Governor from office?
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.” 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 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 two-thirds majority of the Senate praying that he be so removed.”
None of these provisions allows the president to suspend the CBN Governor over an on going investigation suggesting that the independence of the central bank may be threatened.
