In a dramatic turn of events, Nigeria’s newly inaugurated President, Bola Tinubu, has suspended the Central Bank of Nigeria’s (CBN) Governor, Godwin Emefiele, citing a need for sweeping reforms in the financial sector and an ongoing investigation into the office he held.
The announcement, issued by the government secretary’s office late on Friday, marks the conclusion of Emefiele’s controversial tenure, which was often criticised for its unconventional monetary policies.
Following the suspension, Emefiele was detained by Nigeria’s Department of State Services (DSS) on Saturday. A statement from the DSS confirmed his custody “for investigative reasons.”
Who is Godwin Emefiele?
Emefiele, who had been at the helm of CBN since 2014, was instructed to relinquish control to his deputy, Folashodun Adebisi Shonubi, effective immediately.
President Tinubu had earlier conveyed his disapproval of Emefiele’s handling of monetary policies in his inaugural address, critiquing the central bank’s interest rates and calling for a unified exchange rate system. “Monetary policy needs thorough housecleaning,” the president declared.
Emefiele’s stint as the central bank governor was marked by policies that, although aimed at promoting local production and stabilising the Naira, were often seen as unorthodox and lacking transparency. Under his leadership, the bank imposed restrictions on forex sales for certain imports and granted loans to farmers and industries. However, critics accused the central bank of being too closely aligned with the government, particularly during the tenure of former President Muhammadu Buhari.
Emefiele’s strategies to uphold the Naira’s value amidst dwindling foreign reserves led to the introduction of multiple exchange rate windows. This system was heavily criticised for a lack of transparency and was believed to favour those with connections who could exploit the disparities in exchange rates. The Naira has recently experienced a sharp decline, reaching an all-time low last Thursday.
Furthermore, the central bank under Emefiele faced a fiasco with the introduction of redesigned banknotes earlier this year, leading to shortages and chaos at banks and cash points.
In a surprising move last year, Emefiele endeavoured to run for president as a member of the ruling All Progressives Congress, without resigning from his central bank position. This action was in contravention of electoral and central bank guidelines, and he subsequently abandoned his presidential ambitions.
As President Tinubu takes the reins amid an array of economic challenges, including soaring debt, a fragile currency, and high inflation, all eyes will be on how the new administration and central bank leadership navigate these turbulent waters.
Image Credit: CBN Nigeria/Twitter
