Emefiele resigns – under pressure after suspension
By Jeph Ajobaju, Chief Copy Editor
Godwin Emefiele, who is under pressure and investigation, resigned as Central Bank of Nigeria (CBN) Governor in August, two months after his suspension in June by President Bola Tinubu, the news broke at the weekend.
The news coincided with the announcement by Tinubu’s spokesman Ajuri Ngelela of the appointment of Yemi Cardoso as CBN Governor-nominee by his principal.
Cardoso still has to be confirmed by the Senate. If confirmed, he is is expected to serve for a term of five years, which is renewable for another five years.
Cardoso was Lagos Economic Planning and Budget Commissioner when Tinubu was Governor between 1999 and 2007.
TheCable quoted Reuters as reporting Emefiele tendered his resignation letter to Tinubu, in line with the Constitution which gives the power to the President to hire and fire the CBN Governor, with the approval of the Senate in either case.
Emefiele reportedly initially submitted his resignation letter to the Department of State Services (DSS), but it was rejected as the law only allows him to submit it to the President.
With Emefiele’s resignation, legal concerns regarding the nomination of Cardoso as new CBN Governor have been laid to rest.
A statement Ngelale issued at the weekend also announced the nomination of four new CBN Deputy Governors – Emem Usoro, Muhammad Dattijo, Philip Ikeazor, and Bala Bello.
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Emefiele’s travails
Emefiele walked into the eye of the storm when he dabbled in politics last year when he obtained the N100 million nomination form of the All Progressives Congress (APC) to run for the party’s presidential candidate along with Tinubu and others.
Emefiele refused to resign his post before veering into politics, in violation of the CBN Act 2007.
Tinubu won the APC nomination.
Then, upon approval by former President Muhammadu Buhari, Emefiele implemented a naira redesign policy which caused naira scarcity that produced great social and economic hardship between December 2022 and March 2023.
Tinubu alleged at the time the policy was designed to scuttle his presidential ambition, and after his inauguration on May 29, almost everyone knew Emefiele was no longer safe in his job.
Less than two weeks later, Tinubu suspended Emefiele on June 9 “for weighty allegations” and asked him to transfer his responsibilities to CBN Deputy Director of Operations Directorate, Folashodun Shonubi.
The following day, the Department of State Security (DSS), the secret police, announced it took Emefiele into custody for “some investigative reasons.”
Tinubu later appointed Jim Obazee as a Special Investigator to probe the CBN, particularly under Emefiele who was at the helm for nine years, between 4 June 2014 and 9 June 2023.
On July 25, Emefiele was arraigned on a two-count charge of “illegal possession” of firearms at the Lagos Federal High Court and was granted bail in the sum of N20 million.
The two-count charge was later struck out on August 17 after the federal government withdrew it. A new 20-count charge was preferred against him over an alleged conspiracy to carry out procurement fraud, among others.
Emefiele’s arraignment has been stalled twice and he has reportedly proposed a plea bargain, to which Abuja is said to have agreed.
The agreement reportedly requires Emefiele to resign as CBN Governor and “disgorge” some assets.
The CBN Act
The President cannot remove a CBN Governor unilaterally as Section 11 of the CBN Act 2007 specifies conditions upon which he or she can be sacked.
Section 11(2)(f) empowers the President to terminate the appointment of a CBN Governor but the “removal of the governor shall be supported by two-thirds majority of the senate.”
If the President cannot get two-thirds majority of the Senate, another option would be to wait until the CBN Governor is convicted of a criminal offence by a court of competent jurisdiction, per Section 11(2)(b).
However, Section 11(3) of the Act allows the CBN Governor to resign by giving at least three months’ notice in writing to the President.