President Bola Ahmed Tinubu Friday night approved the suspension of Godwin Emefiele as the Governor of the Central Bank of Nigeria (CBN).
In a statement released by Willie Bassey, the Director of Information in the office of the Secretary to the Government of the Federation, the President suspended the embattled CBN Governor sequel to the ongoing investigation of his office and the planned reforms in the financial sector of the economy.
Unconfirmed reports also stated that the former Managing Director of Zenith Bank had also been arrested by the Department of State Service.
Our correspondent learnt that Emefiele would have been arrested a long time ago but for the protection he secured from former President Muhammadu Buhari.
Iwitnesslive had earlier reported how attempts to arrest Emwfiele caused friction between the DSS and the Ministry of Defence. The Chief of Defence Staff Leo Irabor was said to have deployed troops around Emefiele with a view to protecting him from arrest by the secret police.
Emefiele’s arrest appears to have drawn applause from the majority of Nigerians as many social media users described the development as long overdue.
What are the sins committed by the embattled CBN boss?
Terrorism Financing
The DSS caused the stir on December 7, 2022, when it approached a Federal High Court, Abuja Division seeking permission to arrest Emefiele for many infractions that border on terrorism financing.
The secret police in a document filed at the court stated that Emefiele was financing the activities of the “unknown gunmen” and members of the outlawed Independent People of Biafra (IPOB).
In the document, Emefiele was accused of ‘sabotaging President Buhari’s administration, financing terrorism, aiding and abetting terrorism and committing other economic crimes to undermine Nigeria’s national security.’
It also accused the CBN governor of mismanaging its subsidiary, NIRSAL and the bank’s Anchor Borrowers Programme.
In the midst of DSS’s attempt to arrest him, Emefiele reportedly fled abroad but only returned when he secured the backing of ex-President Buhari who had earlier approved the CBN’s plan for Naira redesigning.
The Chief of Defence Staff Irabor who hails from a town close to that of Emefiele in Delta State was said to have deployed heavy security around the embattled CBN Governor to prevent the DSS from arresting him.
Meanwhile, on December 9 last year, a Federal High Court in Abuja declined the SSS application to arrest and detain the CBN governor.
In declining the motion of ex parte filed by the secret police, Justice J. T. Tsoho, the chief judge, said the agency did not provide any concrete evidence to substantiate its claims that Emefiele was involved in terrorism financing and economic crimes.
However, an unconfirmed report has suggested that Emefiele has now been eventually arrested by the secret police with the approval of President Tinubu.
Naira redesigning
It is unsurprising to many Nigerians that the President axed Emefiele because Tinubu had alleged that the hugely unpopular and badly implemented naira redesign policy implemented weeks before the general elections was targeted at undermining his candidature in the presidential election.
Tinubu, during a campaign rally at the MKO Abiola Stadium in Abeokuta, the Ogun State capital in January said, “Let fuel be expensive, only they know where they keep it. Keep petrol, keep the naira, we will vote and be elected. You may change the ink of naira notes. What you expect will not happen. We will win.
“They said petrol will rise to N200/litre and N500/litre, let your mind be at rest. They don’t want the forthcoming election to hold. They want to scatter it but that won’t be possible.
“They thought they could cause trouble; they sabotaged fuel but with or without fuel, with or without motorcycles and tricycles, we will vote and win. This is a superior revolution.”
The policy was widely condemned by Nigerians who went through an excruciating period accessing their money. Experts put the loss caused by the failed naira redesign program at N20 trillion while anti-policy demonstrations caused the deaths of numerous protesters while many commercial banks had their facilities damaged.
The policy was later suspended after the Supreme Court ruled that the old naira notes remain legal tender till December 31, 2023.
President Tinubu in his inaugural speech referenced the ill-fated policy and announced that its administration would revisit it.
“The economy of this country suffered under Emefiele. Surprise is the last thing I feel hearing the news of his suspension. He should be thoroughly investigated, especially as regards the naira redesign policy. Where are the new notes he said he printed?” an economist, Mr Usman Musa, noted.
Mismanagement of forex and poor monetary policy
Although Emefiele is believed to have implemented some big ideas, such as the Anchor Borrower Programme, the RT200, the eNaira and a raft of interventions which helped to stimulate the economy during periods of economic recession.
However, experts thoroughly bashed him for deviating from his core mandate of price stability as the inflation rate jumped to about 22.24 per cent and an exchange rate nearing N800 per dollar.
President Tinubu during his campaign had shown his displeasure at the performance of the CBN Governor as regards the monetary policy
Tinubu singled out the exchange rate management, and the forex policy and expressed displeasure about the naira redesign. He was very clear about his condemnation of it, and that the policy was too harsh for the citizens.
The inflation data available on the CBN website showed that as of December 2014, inflation, All Items (Year on Change) was at 8.00%. Meanwhile, as of April this year, the inflation rate, All Items (Year on Change) climbed 22.04%, an increase in excess of 14%.
With the constant criticism of Emefiele’s policies by President Tunubu, it was obvious that the ideas of the two men were fundamentally different
Presidential ambition
Prior to the naira redesign controversy, many Nigerians, particularly members of civil society and the media, had called for Emefiele’s sacking over his rumoured political ambition.
A group of friends had in May 2022 bought the N100m expression of interest form for the presidential ticket of the APC for him.
This was followed by sponsored posts on various media platforms advertising his candidacy.
Photos of hundreds of branded vehicles were also splashed on social media, attracting widespread outrage.
Emefiele had subsequently instituted a suit against the Independent National Electoral Commission and the Attorney-General of the Federation and the Minister of Justice over his eligibility to contest the APC primary.
He asked the court to stop INEC from disqualifying him from participating in the primary election of his preferred political party.
Diversion of funds
Emefiele was also said to be under the radar of the Economic and Financial Crimes Commission which is investigating allegations of mismanagement and diversion of funds.
Emefiele was said to have diverted money from public coffers to personal use with a preliminary investigation showing that the money he stockpiled for his ill-fated presidential ambition was stolen.
The EFCC is also said to be investigating the Governor for money laundering, round tripping and unwholesome activities through proxies.
Support for Rhodes-Vivour in Lagos
The last straw in the breakdown of the relationship between the President and Emefiele is the alleged funding of the campaign of Gbadebo Rhodes-Vivour, the Labour Party candidate in the Lagos State Governorship election.
A report alleged that Emefiele released N500 million in new banknotes to shore up Rhodes-Vivour’s campaign.
Emefiele was said to be scheming alongside an unnamed “billionaire retired general” from the north with a view to unseating Babajide Sanwoolu.
The allegation came amidst a report that Emefiele’s naira redesigning policy was targeted at the then Presidential candidate of the All Progressives Congress and the alleged support for Rhodes-Vivour is believed to be an attempt to cripple Tinubu’s influence in Lagos.
