Head of the Nigerian Central Bank Godwin Emefiele has been suspended from his position by President Bola Tinubu a year before the end of his term, said the Ministry of Information and Culture in a statement. The suspension comes amid an investigation of his office and planned reforms in the country's financial sector.
According to the ministry, Emefiele had to immediately hand over the affairs of his office to the Central Bank's deputy governor in charge of operations, Folashodun Shonubi.
"Mr. Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor who will act as the Central Bank Governor pending the conclusion of the investigation and the reforms," read the statement.
Emefiele, a former chief executive of Nigeria-based Zenith Bank, took up his position as the Central Bank's governor in June 2014. In May 2019, he was reappointed for a second term that was due to end in June next year.
During his tenure, Emefiele's policies have been subjected to criticism, with some slamming him for excessive and contradictory regulation of banks at the expense of price stability.
He was also criticized for the demonetization policy launched just before Nigerian presidential elections. The old banknotes were replaced by new ones in mid-December last year, following the announcement of such a policy in October. According to the Nigerian Central Bank, the measure was designed to bring down inflation and control the circulation of money. However, the redesign reform eventually led to a lack of new notes, and resulted in cash scarcity across the nation.
Several politicians, including President Tinubu, reportedly accused the governor of fostering the unpopular policy to damage his candidacy. Later, the Supreme Court of Nigeria ruled that the circulation of old Nigerian naira banknotes had been extended until the end of the year, deeming the naira redesign policy invalid.
Last year, the Department of State Services, Nigeria’s secret police, stated that Emefiele was involved in several acts of terrorism financing, fraud and economic crimes that threatened national security, citing a preliminary investigation. Police sought an arrest warrant for the official, but the application was denied by a high court, which said that the service did not provide any concrete evidence.