Mixed reactions trail Emefiele’s suspension as CBN Governor

Mixed reactions have trailed President Bola Tinubu’s suspension of the Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele on Friday.

Emefiele’s suspension was ordered by Tinubu, according to the statement from the Office of the Secretary to the Government of the Federation which came amid ongoing probe of his office and the planned reforms in the financial sector of the economy.

He was directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), Mr. Folashodun Adebisi Shonubi who will act as the CBN Governor pending conclusion of investigation and the reforms.

It was reported that Emefiele as CBN Governor ran multiple exchange rates that allowed arbitrage, at a margin never experienced in Nigeria before. Late last year, he introduced new currencies and mopped up about N3.3 trillion from the economy.

The report further said that Emefiele made available about N800 billion, leading to shortage of currency and a contraction of the economy in the first quarter of 2023.

Reacting to this development, the first professor of the capital market, Prof. Uche Uwaleke in a chat with WesternPost said: “The suspension of Godwin Emefiele 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. Recall that Mr Sanusi Lamido Sanusi, was equally suspended from office by the Jonathan administration. This suspension will mark an end to a turbulent era.”

He noted that Emefiele would be remembered for implementing big ideas such as the Anchor Borrower Programme, the RT200, the eNaira and a raft of interventions that helped to stimulate the economy during periods of recession.

“To be fair, Emefiele, 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,” he added.

Former Aviation Minister, Femi Fani-Kayode said on tweets that he was happy for Nigeria and for Central Bank that Emefiele is gone.

“The beast called Godwin ‘The Greed’ Emefiele has finally been suspended. He is the living manifestation of everything evil and never has a single individual destroyed Nigeria as much as him.

“His atrocities are legion. I am happy for Nigeria and for Central Bank that he has gone. Now he must face the full wrath of the law for his crimes against humanity, his treasonable acts, his funding of terrorism, his massive and monumental thievery.

“And his corruption, his wicked and barbaric ways, his conspiracy to thwart the will of the Nigerian people and his attempt to subvert & scuttle our democracy. He must and will be brought to justice”, Fani-Kayode said.

The aide to former President Goodluck Ebele, Reno Omokri in his own view said the suspension of Emefiele is not in good taste.

Omokri said further that it appears to be a vindictive act, to punish Emefiele for the patriotic Naira redesign policy, which was meant, among other things, to reduce the impact of money on the 2023 elections.

He said: “Tinubu started well. Indeed, I have had cause to praise him. But he should not mar the progress he has made by this act of seeming vengeance.

“The country needs unity and stability after a fractious election. Now is the time for appeasement, not punishment. It is hoped that the President will reconsider his actions for the nation’s greater good.”

Human Rights lawyer, Inebihe Effiong said: “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.”

Meanwhile, Folashodun Adebisi Shonubi who is the CBN acting Governor, has since October 2018, been the Deputy Governor, Operations Directorate.

Shonubi was born on the 7th of March, 1962. He attended the University of Lagos from 1978 to 1983 and obtained a Bachelor of Science in Mechanical Engineering. He also represents the CBN on the board of FIRS.