Does the President have powers to suspend CBN governor?

On June 9, President Bola Tinubu suspended Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), with immediate effect through a statement by Willie Bassey, the Director of Information for the Secretary to the Government of the Federation.

 The statement which was on behalf of George Akume, the Secretary to the Government of the Federation said the action was taken in light of ongoing investigations into the CBN Governor’s office and the planned reforms in Nigeria’s financial sector.

Many concerned Nigerians asking for the legality of the action of the president with regard to the suspension or outright removal of the central bank government from office.

The section of the CBN Act 2007 said the suspension or removal of the CBN Governor can occur under certain circumstances. These circumstances include:

If the Governor, Deputy Governor, or Director of the Bank becomes a member of any Federal or State legislative house.

If they become a Director, officer, or employee of any bank licensed under the Banks and Other Financial Institutions Act.

If the Governor, Deputy Governor, or Director becomes of unsound mind or incapable of carrying out their duties due to ill health.

If they are convicted of any criminal offense by a court of competent jurisdiction, except for traffic offenses or contempt proceedings related to the execution of their duties.

If they are guilty of serious misconduct in relation to their duties under the CBN Act.

If they are disqualified or suspended from practicing their profession in Nigeria by an order of a competent authority made in respect of them personally.

If they become bankrupt.

But in line with the Act, the removal of the CBN Governor requires the support of a two-thirds majority of the Senate, which would need to pass a resolution in favor of the removal.

In addition to this,  the Governor, Deputy Governor, or Director has the option to resign from their position by providing written notice to the President. If any of these positions become vacant due to death, resignation, or other reasons before the expiry of the term, a suitable replacement will be appointed in accordance with the prescribed procedures outlined in the CBN Act.

What this means is that the section of the CBN Act does not explicitly mention suspension as a means of removing the CBN Governor.

It merely states the circumstances under which the Governor, Deputy Governor, or Director may cease to hold office, including reasons such as illness, criminal conviction, serious misconduct, disqualification from practicing a profession, or bankruptcy.

However, the Act does not specifically address suspension as a mechanism for removing the CBN Governor.

Therefore, the question of whether the CBN Governor can be suspended over an undisclosed ongoing investigation falls outside the scope of the information provided in the Act.

The provisions of the CBN Act regarding the removal, resignation, and appointment of the CBN Governor are relevant in determining the procedures and grounds for such actions.

 May be a similar case in Sanusi Lamido Sanusi a sitting CBN governor will serve as a precedent.

On February 20, 2014, President Goodluck Jonathan suspended Sanusi Lamido Sanusi as the governor of the Central Bank of Nigeria (CBN).

This was in the middle of an allegation by Sanusi that over $20 billion of crude oil revenue was not remitted to the federation account by the Nigerian National Petroleum Corporation (NNPC).

Although the government maintained that the suspension was because of his “financial recklessness”, the general impression was that Sanusi was being punished for exposing “corruption”.

Sanusi subsequently went to the federal high court sitting in Abuja to challenge his suspension, insisting that the president had no such powers under the CBN law.

The governor can only be removed by two-thirds majority of the senate, according to the CBN Act 2007, but it is silent on suspension.

Sanusi’s lawyers, Kola Awodein and Abubakar Mahmoud, argued that he was not an employee of the federal government but that of the board of the CBN and could not be disciplined by the president.

However, federal government’s lawyers, Fabian Ajogwu and Mike Ozekhome, argued that the high court lacked the jurisdiction to adjudicate since it was a labour-related matter that should go before an industrial court.

On May 21, 2014, Gabriel Kolawole, the judge, invoked section 24 of the National Industrial Court Act 2012 and ordered that the case be transferred to the National Industrial Court (NIC).

He also said that in line with sections 251 and 254 of the 1999 constitution, the CBN was a creation of the national assembly and that Sanusi was a public officer.

Since Sanusi was an employee of the CBN by virtue of the CBN Act No 7 of 2007, the judge declared, he was a public servant and could, therefore, be disciplined by the president.

Edmonton Harvey Specter, who said he was on president’s legal team, tweeted this on Friday night after the suspension of Godwin Emefiele as CBN governor by President Bola Tinubu: “Can the President suspend the CBN Governor? In Sanusi Lamido v. President & Ors where I was part of Counsel that represented the President and which was decided at the FHC Abuja, it was held that ‘While the President cannot remove the Governor, he can exercise some form of disciplinary control which includes suspension over him’. The matter was not appealed.”

“Even though I was on the ‘winning’ side, I wanted Sanusi Lamido to appeal the Judgement so they could be a declaration on the issue once and for all by the Supreme Court. Was disappointed when he didn’t,” he added.

Sanusi became emir of Kano while the legal battle raged and he eventually terminated his case on July 3, 2014.

Sources: The Cable  

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