"I have absolute power to suspend Central Bank Governor" – President Jonathan

The Nigerian President, Goodluck Jonathan says he has absolute power to suspend the governor of the Central Bank of Nigeria (CBN), addressing controversies tailing the suspension.

At a Presidential Media Chat held in Abuja on Monday, President Jonathan touched on some issues of national interest – the National Conference, suspension of Sanusi Lamido Sanusi, Kerosene subsidy, power stability and the insurgency in the north-east.

On his powers to suspend the CBN governor, he said:

“The issue of the Central Bank is quite unfortunate but I will respond based on the issues you raised. Forget whether it is Goodluck Jonathan; it is whether the President of the Federal Republic of Nigeria has powers to suspend the governor of CBN. I will tell you, yes, the President has absolute powers to suspend the CBN governor. CBN is not even well defined in the Nigerian constitution. 

"If you look at the Nigerian constitution, section 153, talks about executive bodies like Federal Character Commission, Civil Service Commission, Judicial Service Commission, about 14 of them, the code of conduct, these are clearly defined and it says that the President appoints, but must clear with the National Assembly. For the President to remove anybody, the president must go through Senate. 

"CBN as the number one bank is not even well defined in the Nigerian constitution, but CBN law makes the provision that to appoint the governor, deputy governors, and the non-executive directors, the President appoints and sends to Senate but the President has oversight functions over cbn. But if somebody tells you that the CBN is a different country, it is not true because for the CBN governor to change the colour of the Naira, the President must approve and for the CBN account to be even published, the President must approve.

"Sanusi is still the governor of CBN and people must know that and that is why there can never be a substantive governor until the issue is sorted out. Sanusi could come back tomorrow to continue his work because the issues raised are issues that the board of CBN with the Financial Reporting Counicl, the authority that has the power to look into the financial transactions of CBN will deal with.

“The issue of suspension came in because the CBN Act is somewhat anomalous. We have similar situations where the CBN governor is also the chairman of the board. The CBN governor is the chief executive of CBN and at the same time is chairman of the CBN board; so if there are allegations about the CBN governor, it becomes a problem for you to look into it. And there were issues raised based on the 2012 audit report and for you to look into those issues, for you to be sure of what you are doing, the CBN governor should just step aside.

"Immediately the board and the Financial Reporting Council sorts out those grey areas, and if it does not affect him, he would come back to do his work. So, you cannot say now that you are going to Senate to ask for powers to suspend, then maybe in one week or so, if the board of the Financial Reporting Council… then you go back to the Senate, this man is coming back, no.

“It is when you want to remove the governor completely. Assuming that the board of CBN and Financial Reporting Council look into those grey areas and feel that the infractions are grave enough for Sanusi to leave completely, then I will have to go to Senate no matter the issues they raise. I cannot say that I am firing him, it is the Senate. So, I can place those issues before the Senate and if the Senate agrees with the report, and says yes, then he can leave.

"The issue of suspension and removal are quite different.”