Wednesday, 20 January 2016

Can the President sack the CBN Governor

Someone asked why the President cannot sack the CBN Governor for implementing monetary policies that are weakening the Naira. I don’t believe the President has the power to fire the CBN Governor. Here’s Section 12 of the CBN Act.


12. (1) No person shall be appointed or shall remain Governor, Deputy Governor or Director of the Bank if he is


(a) a member of any Federal or State legislative house;


(b) a Director, officer or employee of any bank licensed under the Banks and Other Financial Institutions Decree 1991.


(2) The Governor, any Deputy Governor or any Director shall cease to hold office in the Bank if he -


(a) becomes of unsound mind or, owing to ill health, is incapable of carrying out his duties;


(b) is convicted of any offence involving dishonesty or any other offence the maximum penalty of which exceeds imprisonment for six months;


(c) is guilty of a serious misconduct in relation to his duties under this Decree;


(d) is disqualified or suspended from practising his profession in Nigeria by order of a competent authority made in respect of him personally;


(e) becomes bankrupt or suspends payments or compounds with his creditors.


(3) The Governor or any Deputy Governor may resign his office by giving at least three months notice in writing to the President of his intention to do so; and any Director may similarly resign by giving at least one month's notice in writing to the President of his intention to do so.


(4) If the Governor, any Deputy Governor or any Director of the Bank dies, resigns or otherwise vacates his office before the expiry of the term for which he has been appointed, there shall be appointed a fit and proper person to take his place on the Board for the unexpired period of the term of appointment in the first instance -


(a) if the vacancy is that of the Governor or a Deputy Governor, the appointment shall be made in the manner prescribed by section 9(1) of this Decree; and


(b) if the vacancy is that of any Director, the appointment shall be made in the manner prescribed by section 11(1) of this Decree.


Please let me know your thoughts about this. Is there anything here that suggests that the president can sack a CBN Governor?


 

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