Over the past two weeks, Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has been in the eye of the storm from withdrawal limit to alleged plans by the Department of State Services (DSS) to arrest him over terrorism charges then to his refusal to appear before the House of Representatives and other sundry issues. In this piece CHIZOBA OGBECHE looks at the issues and wonders whether the apex bank boss will see out the remainder of his term in office.
Eight years into his second tenure in office as Governor of Nigeria’s Central Bank, Mr. Godwin Emefiele, is facing his toughest challenge yet.
For Emefiele, a seasoned banker who has seen many seasons of financial hiccups and plots, and survived even change of government, these are not the best of times.
The Beginning
First appointed by former President Goodluck Jonathan on February 20, 2014 hours after the sack of Sanusi Lamido Sanusi, Emefiele formally took over the reins of Nigeria’s apex bank on June 2, 2014.
A year later when President Muhammadu Buhari took over government having defeated Jonathan in the 2015 polls, there were fears that Emefiele, like most appointees of former administration, will be swept aside. That was not to be as he ingrained himself into the ‘kitchen cabinet’ of the new powers-that-be.
So much was the president’s confidence in him that he was reappointed for a second term final five-year term on May 9, 2019 in a letter to the Senate.
That reappointment by Buhari made Emefiele the first CBN governor to serve two terms since Nigeria returned to democracy and also the second such reappointment in the history of the CBN.
How he won Buhari over
Industry watchers point to a number of factors that endeared Emefiele to the president. Aside the economic side, the speculations subsist that he was ready to kowtow to the powerful members of the Buhari family and was never shy to pander to their whims even when in the face of ‘economic suicide.’
Former CBN governor, Sanusi, had alleged in August 2016 that the CBN was engaged in roundtripping, a situation some alleged favoured those that are close to the president.
According to the one-time Emir of Kano, some people obtain dollars at official rate and resell at a higher rate at the parallel market an indictment on Emefiele.
“We have created our own billionaires since 2015 from foreign exchange subsidy,” Sanusi said in a speech at 15th Joint National Council on Development Planning meeting held in Kano.
“For instance, when the CBN was selling dollar at N197 and people were buying at N300, if I sit down in my garden and pick up my phone I would have enough people to call in the industry to get 10 million dollars at officials rate and sell at N300 and make a profit of over N1 billion and if I do that four times in a year, for doing nothing I would have earned N4 billion.”
However, for those who think that was not the case, Emefiele won Buhari over by his domestication of the real sector and boosting agricultural development, his defiant stance against calls for floatation of the exchange rate which has the potential of devaluing the Naira as well as his policy of restricting access to foreign exchange for importation of minor products.
What went wrong?
On October 26, Emefiele announced the plan to redesign the naira to control money supply and aid security agencies in tackling illicit financial flows.
The apex bank boss had said the new notes (N200, N500 and N1000) will be effective from mid-December 2022.
The first salvo against the planned redesigned notes was from no less a person than the Minister of Finance, Budget and National Planning, Zainab Ahmad, who disowned the policy, stating that if implemented, the redesigning would portend great consequences for the nation and its economy.
This was barely 48 hours after the announcement by the CBN governor.
Ahmad appearing before senators on a budget defence said, “Distinguished senators, we were not consulted at the Ministry of Finance by CBN on the planned Naira redesigning and cannot comment on it as regards merits or otherwise.
“However, as a Nigerian privileged to be at the top of Nigeria’s fiscal management, the policy as rolled out at this time, portends serious consequences on value of Naira to other foreign currencies.
“I will however appeal to this committee to invite the CBN governor for required explanations as regards merits of the planned policy and rightness or otherwise of its implementation now.”
Nigerians kick
A lot of Nigerians and groups kicked against the policy, but the CBN didn’t buckle. It only shifted ground on withdrawal limit from initial N100,000 a week for individuals, and N3 million for corporate bodies to N500,000 and N5 million for individuals and corporates, respectively.
Even at that, the murmurs persist as the new currency is all but available in banking halls and ATMs rather at parties and clubs.
To address the gaps in the policy, the House of Reps as part of its oversight had invited Emefiele on three occasions but he made excuses and didn’t show up.
New twist
There was a twist to the Emefiele saga on Tuesday, December 20 when it emerged that the DSS had sought leave of the Federal High Court Abuja to arrest the CBN governor on allegations of terrorism financing.
In the suit marked No. FHC/ABJ/CS/2255/2022 between State Security Service (applicant) and Godwin Emefiele (respondent), Justice John Tsoho will give the embattled Governor of the CBN reprieve as he rejected the application of the secret police.
Tsoho said the entire affidavit depositions, especially as per paragraph four of the supporting affidavit, which purport that preliminary investigation has revealed various acts of terrorism financing, fraudulent activities perpetrated by the respondent and his involvement in economic crimes of national security dimension was not weighty enough.
“In the light of the foregoing reasons, I decline to grant this application ex parte. If the applicant believes that the evidence available to it so far is sufficient, then it can as well arrest and detain the applicant, even without the order of the court. If, however, the applicant desires to still pursue this application, then it should place the respondent on notice considering the sensitive public office that he occupies,” the judge ruled.
Civil societies join the fray
While the court process was ongoing, groups believed to be sponsored by the embattled governor whose whereabout is unknown at the moment, besieged the court to register their angst against the DSS terming their case ‘witch-hunt’ against Emeifele.
An international dimension will be added to it as the Centre for Financial Surveillance and Illicit Transaction Tracking Group (CSITT) raised the alarm of looming consequences of sanctions from Egmont Group owing to the DSS unprovoked attack on the apex bank Ggovernor.
The CSITT, in a statement by the Director, John Dimu, said “Egmont Group, a 164 countries membership forum that provides financial units with a platform to securely exchange expertise and financial intelligence to combat money laundering and terrorist financing among others, would have suspended Nigeria if DSS had arrested Emefiele.
“The allegation that the DSS embarked on this plot to remove the CBN Governor for political and pecuniary reasons, is not only a huge shame but against the ethics of the Egmont group, which Nigeria is a member of. Recall that the group had suspended NFIU, an arm of the Economic and Financial Crimes Commission, after its plenary in Macao, China, on July 2, 2017.
@ The group suspended Nigeria as a result of its lack of a legal framework and autonomy. It’s quite shocking that DSS could be found being part of this illegal move. We, advise DSS to focus on its mandate rather than becoming lapdogs for politicians.”
Also, The Conference of Nigeria Political Parties (CNPP), and CSOs at a joint press conference, in Abuja, by Chief Willy Ezugwu (CNPP secretary general and national convener), and Alhaji Ali Abacha (CNCSOs national secretary), said a thorough investigation of the matter would reassure the international community that the rule of law prevails in the country.
Ezugwu and Abacha, said: “The gravity of what Nigeria was confronted with came to the front burner when members of the group revealed that the DSS had even gone to the extent of approaching the court to obtain a warrant to arrest Godwin Emefiele without the consent or knowledge of the Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, President Muhammadu Buhari.”
However, the Human Rights Writers Association, (HURIWA) called on the National Assembly to use its legislative powers to kick out Emefiele.
HURIWA’s National Coordinator, Emmanuel Onwubiko, said the governor had shown signs of irredeemable arrogance and flagrant disregard for constitutional provisions, adding that the National Assembly should not let Emefiele destroy the economy with his draconian and anti-people fiscal and monetary policies.
Furthermore, a CSO, the Peoples Alliance for Indigenous Rights (PAIR), warned other groups and politicians against stalling the work of security agencies especially the DSS, stressing that nobody was above investigation and arrest.
According to the group, “Since the matter came to light, even the Atiku-Okowa presidential campaign council had joined the fray, a situation the PAIR described as interesting and strange.
“We will imagine that an appointee of the federal government under investigation should be applauded by all and sundry. But to find groups and even the PDP kicking against government’s effort to safeguard the nation speaks volume and confirms the rumoured backhand dealings of the purchase of the PDP vice presidential ticket by the subject under scrutiny for his kinsman,” the statement alleged.
In a statement signed by PAIR National Coordinator, Comrade Chinedu Chukwudi, in Abuja last Wednesday, the group warned against making some people untouchable and above the law.
“We must reiterate that nobody is above the law. The idea being canvassed in some quarters that Mr. Emefiele is above the law is dangerous and sends a wrong signal that some persons are untouchable however grave the issues they are being investigated for are.
“In this country, we have seen important personalities; politicians, former governors, clerics, activists and very senior government officials invited, arrested and questioned and the heavens did not fall.
“We wonder why the various pro-Emefiele groups and individuals cannot exercise patience until the kernel of his imminent arrest is brought to light. To even think that he has continued to dodge summons by the National Assembly should worry every lover of constitutional order and rule of law.”
Also, the National Youth Council of Nigeria (NYCN); Coalition of Youth Groups in Nigeria; Citizens Network Against Corruption and Terrorism Financing and 27 Civil Society Advocacy Groups for Accountability and Probity staged a massive protest at the CBN headquarters in Abuja on Friday.
The groups described Mr. Emefiele as a national security threat as well as an economic disaster that must leave the CBN or be forced out.
In a statement read by Dr. Solomon Adodo, convener of the protest, they said, “It is strange that in the last few days, Mr. Godwin EMEFIELE, Governor of the Central Bank of Nigeria (CBN) has been trying, albeit unsuccessfully, to blackmail the Department of State Services (DSS) and divert attention from the real issue of his alleged heinous crimes of terrorism financing.
“In that attempt, Mr. Emefiele has suddenly become both a saint and a messiah who wants to rescue Nigerians from the mess he created in the first place. Through some uniformed, poorly-informed and/or out rightly mischievous members of the civil society and the media, he is attempting to whip undue public sentiments to shield himself from proper public and security scrutiny, and from answering for his alleged crimes. We refuse to accept such bald-faced public blackmail.”
The protestors bore placards with inscriptions such as: “Are you a terrorist? If you are not, why are you on the run? Notable Nigerians have been quizzed by the DSS. Why are you hiding from scrutiny? Can you run the Central Bank of Nigeria from abroad? Is Mr. Emefiele too big to be quizzed and detained?”
DSS reacts
Following the various agitations, the DSS warned Nigerians against being used as instruments of destabilisation, saying that the service will not be distracted by those seeking to use “propaganda” to undermine its lawful investigati
The DSS in a press release by its spokesman, Peter Afunanya, maintained that it remains focused and unbiased and would not succumb to propaganda, intimidation and the desperation of hirelings to undermine it. Afunanya said: “As such, the Service will continue to disseminate actionable intelligence to the relevant authorities devoid of any sentiment. While professionally discharging its mandate, the DSS pledges to. It will also not give room to the use of falsehood and deceit to misdirect public understanding and perceptions of issues of national importance.
“It will also not give room to the use of falsehood and deceit to misdirect public understanding and perceptions of issues of national importance. The service warned those on a wild goose chase to be mindful of their actions. Similarly, it urges members of the public to disregard the vituperations and rantings of misguided elements and not allow themselves to be used as instruments of destabilisation.”
What’s next?
As the drama continues and with rumour that the embattled apex bank governor has sought leave of the president to work from abroad under the guise of being sick, industry watchers are asking how much longer can he hold out and what are the implications of his staying out have on monetary policy of the country.
Is this beginning of the end of the very powerful CBN governor who has been fortunate to serve two administrations? Only time, as they say, will tell!
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