Why Tinubu suspended Emefiele as CBN governor, real reason emerges

A report by The Punch indicates that President Bola Tinubu has taken the decision to suspend Godwin Emefiele, the Governor of the Central Bank of Nigeria, with immediate effect.

Telescope.ng gathered that the suspension comes in the wake of an ongoing investigation into the activities of his office and planned reforms in the financial sector.

In a statement released by the director of information, Office of the Secretary to the Government of the Federation, Willie Bassey, it was announced on Friday that Emefiele has been instructed to hand over his duties to the deputy governor (Operations Directorate), Folashodun Adebisi Shonubi, until the investigation and reforms are concluded.

While there were unconfirmed reports suggesting that the Department of State Services had arrested the suspended CBN governor, the spokesman for the DSS, Peter Afunaya, stated that he could not verify the arrest.

However, a reliable security source, speaking on condition of anonymity, revealed that Emefiele would have faced arrest during the previous administration of President Muhammadu Buhari.

The source stated that Emefiele has numerous questions to answer and would not be allowed to leave the country.

Emefiele had already faced controversy earlier in January 2023 when security operatives attempted to arrest him on allegations of terrorism financing and economic crimes.

According to Section 11 of the CBN Act, 2007, the President has the power to terminate the appointment of the CBN governor, but this requires the support of a two-thirds majority in the Senate.

The introduction of the naira redesign policy led by Emefiele in October 2022 sparked controversy, with the then Minister of Finance, Budget and National Planning, Zainab Ahmed, expressing her opposition to the policy.

The situation caused tension and uncertainty until it was confirmed by the Presidency that President Buhari approved the policy to combat inflation, currency counterfeiting, and ransom payments.

In early January 2023, the CBN initiated a cash swap program in rural areas to address the lack of banking services.

However, both the old and new naira notes went out of circulation, exacerbating the country’s economic challenges. Fuel scarcity also added to the dissatisfaction among Nigerians, who criticized the government’s policies.

Tinubu, who was the presidential candidate of the All Progressives Congress at the time, criticized the naira redesign, alleging that it was targeted at his candidature.

He assured his supporters that regardless of fuel prices and currency issues, the upcoming elections would proceed successfully.

Following legal challenges from the governors of Kaduna, Kogi, and Zamfara states, the Supreme Court eventually ruled in March that the old naira notes would remain legal tender until December 31, 2023, bringing an end to the controversies.

The failed naira redesign policy resulted in an estimated loss of N20 trillion, widespread protests, and damage to bank facilities.

Prior to the naira redesign controversy, there were calls from civil society groups and the media for Emefiele’s dismissal, fueled by rumours of his political ambitions.

Friends of Emefiele had purchased an expression of interest form worth N100 million for his presidential ticket in the APC, which generated outrage.

Emefiele then filed a lawsuit against the Independent National Electoral Commission and the Attorney-General of the Federation and the Minister of Justice to secure his eligibility for the APC primary election.

In light of these events, President Tinubu has taken decisive action by suspending Emefiele and initiating an investigation into the operations of the CBN. The intention is to address the ongoing issues and bring about necessary reforms in the financial sector, ensuring stability and growth for the Nigerian economy.