On the 9th of June 2023 various social media platform carried the news on the suspension of the Central Bank of Nigeria governor, Godwin Emefiele.

In this article, the writer will carefully examine the powers of the President as it concerns the Central Bank Management. The Central Bank of Nigeria which was established by the CBN Act of 1958 and commenced operations on 1 July 1959, has undergone so many modification especially with the recent CBN Act 2007 as well as other enactments notably is, Banks and Other Financial Institution Act ,2020. The Act was enacted to overhaul and improve the Banking and Financial sector for a positive impact on Nigerian Economy.

The Central Bank is the apex bank in any nation’s economy, and it is regarded as the banker’s bank because it provides regulation on the Banking and Financial section, its jurisdiction spanned through licensing, operations and even the winding up of service providers within the sector. The CBN Act 2007 repealed the CBN Act 1991 as such, it serves the extant legislation in this regards.

While the CBN is somewhat independent the executive through the president of the Federal of Nigeria appoints the CBN Governor and Deputy Governors as provides in section 8 of the Central Bank Act 2007 reproduced hereunder:

Section 8(1) The Governor and Deputy Governors shall be persons of recognized financial experience and shall be appointed by the President subject to the confirmation by the Senate on such terms and conditions as may be set out in their respect letters of appointment.

By implication the appointment of the CBN Governor and Deputy Governors would not be complete without the confirmation of the Senate. Section 8(4) made it mandatory that the CBN Governor shall appear before the National Assembly at semi-annual hearings, and as well keep the President informed of the affairs of the Bank including report on its budget.

While the CBN Act invested the president with powers of appointment of the principal officers of the Central Bank, it also clearly outlined what would lead to disqualification and cessation of such appointment in section 11 of the Act in the following terms:
Section 11 (1) A person shall not remain a Governor, Deputy Governor of the Bank if he is—
(a)A member of any Federal or State legislative house; or

(b) (b) a Director, officer or employee of any bank licensed under the Banks Other Financial Institutions Act.
(2) The Governor, Deputy Governor or Director shall cease to hold office in the Bank if he—
(a) becomes unsound mind or, owing to ill health, is incapable of carrying out his duties;
(b) is convicted of any criminal offence by a court of competent jurisdiction except for traffic offence or contempt proceedings arising in connection with execution or intended execution of any power or duty conferred under this Act or the Banks and Other Financial Institutions Act;
(c) is guilty of a serious misconduct in relation to his duties under this Act;
(d) is disqualified or suspended from practicing his profession in Nigeria by order of a competent authority made in respect of him personally;
(e) becomes bankrupt;
(f) is 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.

A careful reading of section 11 of the CBN Act, one could easily deduced that there is no mention of the suspension of the CBN Governor by the President, although section 11(2) paragraph (f) clearly provides that the CBN Governor or Deputy shall not remain in office if removed by the President, this removal could only be effective subject to the proviso which to that effect stated in unambiguous term that the removal shall be supported by two-thirds majority of the Senate. The term ‘Shall’ has been interpreted by the court in the case of General Muhammadu Buhari v. Independent National Electoral Commission (2008) LPELR—814 (SC), it was held thus:
‘’When the word ‘’shall’’ is used in a statute it connotes the intendment of the legislator that what is contained therein must be done or compiled with. It does not give room for manoeuvre of some sort, or evasiveness. Whatever the provision requires to be done must be done, and it is not at all negotiable…’’ per Mukhtar, JSC (PP.276—277, Paras. E – D)
Bearing in mind of the decision of the Supreme Court in General Muhammadu Buhari’s case and plethora of other cases the term shall as used in the CBN Act in section 11(2)(f) imports compulsion and whatever the provision requires to be done must be done. Consequently, the suspension of the CBN Governor is foreign to the Act, and if need be he is to be removed, the Senate must ratify such removal in strict fidelity to the Act.

Conclusively, whether it is for disciplinary measures or so the President in this instance Tinubu, cannot unilaterally neither remove nor suspend the CBN Governor without the approval of two-thirds majority of the Senate. The writer concedes that what Tinubu should have done was sacking Godwin Emefiele, transmitting same to the Senate for onward approval in other to be in compliance with the law.

 

Author : Agu Moses Chukwudi