Emefiele, Resign Now

The ambition of the Central Bank of Nigeria’s (CBN) Governor, Godwin Emefiele, to participate in the
party primary towards the presidential election in 2023 has been eliciting mixed reactions from both politicians and industry watchers, as concerns mount over possible conflict of interest on his regulatory and supervisory role on Nigerian banks.
In his suit confirming his political ambition, Emefiele sued the Independent National Electoral Commission (INEC) and the Attorney General of the Federation (AGF) asking the court to restrain them from compelling him to resign as the CBN governor to run for office in 2023. His lawyer, Mike Ozekhome, expressed fears that the INEC and the AGF were making “frantic efforts to disqualify” Emefiele “from participating in the presidential primaries scheduled for June 3, 2022, for not resigning from his office before the parties’ primaries.”
Emefiele was reported to have joined the list of presidential aspirants who had picked the expression of interest form of the ruling party, the All Progressives Congress (APC). Although the form was said to have been picked on his behalf by a group, the apex bank governor had gone to the Federal High Court in Abuja seeking to retain his office as the Central Bank governor while pursuing his interest in the presidential race.
Emefiele, through his counsel, Ozekhome, is seeking the court’s interpretation as to whether by the provisions of Section 84 (3) of the Electoral Act, 2022, a political party can by its constitution impose any nomination qualification criteria or measures on aspirants or candidates, including him who is in centrally the constitutional provision.
He is also seeking the court to clarify whether he can be compelled to resign his position as Governor of the CBN earlier than 30 days before the political party primary, in line with the provision of Section 84 (3) of the Electoral Act, which is against Section 137 (1) of the Constitution of Nigeria as amended, which requires a public officer to resign, withdraw, retire at least 30 days from the date of the presidential election.
However, the Federal High Court refused to shield Emiefele from being disqualified to contest for the presidential ticket of any political party ahead of the 2023 general elections. Ruling on the ex parte application, the judge, Ahmed Mohammed, ruled that he would rather order INEC and the AGF to appear to state their side of the case instead of granting the CBN governor’s request.
The Federal Government had last Wednesday through the Office of the Secretary to the Government of the Federation (SGF), Boss Mustapha, issued a circular directing serving Ministers in the cabinet, heads of government agencies, ambassadors and other political appointees of the administration, coveting political ambitions in 2023 to resign from the government. Soon after the directive, the CBN boss reportedly met with the President.
In our opinion, Emefiele’s action, if unchecked timeously, portends great danger to the fragile economy of the country. There is everything morally and legally wrong with his ambition to become Nigeria’s President while still occupying his current position. Looking at the handwriting on the wall, it is clear that the CBN governor has been a partisan politician to the disadvantage of the country.
Section 6 of the CBN Act says that the Governor of the Central Bank should not pursue any interest that would make him conflict with his official duties. The Act further states that the office should be autonomous and independent. Emefiele must understand that he is the number one banker in the country and chairman of the Bankers’ Committee as well as head of the financial regulations in Nigeria that determine exchange and inflation rates.
The CBN governor must realise that it is improper for him to declare a partisan interest with the sensitive position he occupies. The apex bank is like INEC which should not be under the control of any political influence or party. Indeed, sensitive security documents for the conduct of eletions are deposited in the Central Bank by INEC before any elections. Nigerians must know that Emefiele has the powers to remove the managing directors of banks and can use his position to punish or witch-hunt any bank. Why would a man who keeps in custody the nation’s foreign exchange submit himself to partisan politics?
The apex bank boss demonstrated his partisan posture during the #ENDSARS protest. Recall that Emefiele asked the leaders of the group to shelve their protest, which they refused to comply with. They then had their accounts blocked by the CBN, having gone to court to secure an ex- parte order to do that. This is because they refused to yield to his demand to halt the protest.
Already, and rather unsurprisingly, local and international media have picked up the news of Emiefele’s reported interests and his unwise responses to his linkage to partisan politics. It is needless to say that his alleged aspiration while holding office as governor of the apex bank is a very weighty turn of events. It can potentially erode the confidence in the Nigerian monetary system, which is expected to be administered by non-partisan experts with the CBN governor as the dominant head of the team.
When the CBN Governor assumed office in 2014, he set a target to achieve single-digit inflation and maintain a stable Naira. But the national currency is trading at N590 per dollar on the unofficial market and N415 at the official window. There are also profound implications for the confidence of investors, both foreign and local. Moreover, the Central Bank is an institution that needs to earn the trust of all stakeholders in the economy, irrespective of their political affiliation, creed, gender, religion, ethnicity or vocation.
The economy is yet to recover from the shocks of the COVID-19 pandemic. The disparity in rates has created a paradise for forex brokers and currency speculators. The business of forex roundtripping is also flourishing. There is a liquidity crisis in the forex market on a scale never witnessed before. We cannot afford to worsen the current economic situation with a Central Bank that is entangled in the controversy of political partisanship. In the circumstances, the most respectable course of action for the CBN governor is to resign to preserve the integrity, credibility, independence, neutrality and professionalism of the bank.