N'ASSEMBLY WANTS TO SPEED UP THE SCREENING PROCESS

The National Assembly has made suggestions that it intends to speed up the selection of candidates for the roles of deputy governor and governor of the Central Bank of Nigeria.

This would be done, according to the parliament, along with a list of the presidents two nominations for ministry positions.

Yemi Cardoso was proposed by the president as the new governor of the Central Bank on Friday.

In 1999, Cardoso served as the budget and economic planning commissioner for Lagos State.

In addition, Tinubu gave his approval to the appointment of four new deputy governors of the top bank, each of whom will hold office for a comparable initial term of five years, subject to Senate confirmation.

Senate confirmation is required for ministerial appointments. Ajuri Ngelale, the president's special media and publicity adviser, noted in a statement.

48 ministry nominees' names had already been forwarded to the president in two batches for approval.

The Red Chamber, however, rejected three nominees, including the former governor of Kaduna, Nasir El-Ruffai, and the former managing director of Nexim Bank, Stella Okotete, while confirming 45 applicants for ministerial positions.

After the screening, the Senate began its yearly break, which is anticipated to end on Tuesday, September 26.

Following the rumored resignation of the previous governor, Godwin Emefiele, Cardoso was nominated.

“President Tinubu nominates new CBN governor and management team for senate screening and confirmation,” reads the announcement.

In addition, Tinubu gave his approval to the appointment of four new Deputy Governors of the Central Bank of Nigeria, who will serve initial terms of five years subject to Senate confirmation.

After being named by President Bola Tinubu, Folashodun Adebisi Shonubi had been in control of the top bank in an acting role.

Adaramodu stated that the Senate would resume on September 26 to consider the new nominees. When the Executive is able to do so, the Senate will be anticipating the nominations.

According to the Constitution, the Executive must present ministerial and other statutory nominees to the Senate for consideration and confirmation. The Senate is prepared to take quick action on this.

The number of ministers would increase from 45 to 47 once confirmed.

LEGAL SQUABBLE

President Bola Tinubu may need to dismiss the four deputy governors who served under Godwin Emefiele in light of the nominations of Yemi Cardoso as the CBN's new governor and Mrs. Emem Usoro, Mr. Muhammad Dattijo, Mr. Philip Ikeazor, and Dr. Bala Bello as its new deputy governors.

It was reported that Godwin Emefiele had to step down while still being held in custody in order to make room for Cardoso to take his place.

However, the CBN ACT of 2007 gives the President the authority to dismiss deputy governors without the need for Senate approval or a formal resignation from the CBN governor.

Section 11 (1) of the act states, “A person shall not remain a Governor, Deputy Governor or Director of the Bank if he (f) is removed by the President: Provided that the removal of the Governor shall be supported by two-thirds majority of the Senate praying that he (she) be so removed.” This is one of the requirements for the disqualification of a CBN governor or deputy governor.

Folashodun Shonubi (Operations Directorate Oct 2018 - Sep 2023), the acting governor, is one of the deputy governors who is most likely to be fired.

Others include Dr. Kingsley Obiora (Economic Policy Directorate Mar 2020-Sep 2023) and Aishah Ahmad (Financial System Stability Directorate Mar 2018-Sep 2023), as well as Edward Adamu (Corporate Services Directorate Mar 2018-Sep 2023).

The Act states that a board of directors made up of a “Governor who shall be the Chairman; four Deputy Governors; the Permanent Secretary, Federal Ministry of Finance; five Directors; and Accountant-General of the Federation” will be responsible for setting policy and overseeing the general administration of the bank's affairs and business.

LAWYERS RESPOND.

While their terms were still in effect, certain Senior Advocates of Nigeria protested with the nomination of four new CBN deputy governors.

They couldn't be their replacements, according to Mike Ozekhome, SAN, unless they were taken out first.

Tenure is statutory, he declared. Replacements can't be made unless the original employee is fired first. Two Obas, two Ezes, or two Emirs cannot coexist in the same palace. Before another takes the throne, one must depart.

Additionally, a lawyer named Adegoke Rasheed, SAN, said that their statutorily required appointments were in order.

He further stated that anyone with grievances against them should contact the proper parties.

DEMANDS OF THE PRIVATE SECTOR

Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria, asked the new CBN leadership to prioritize matters relating to monetary policy and foreign exchange management.

I think getting our monetary policy right will be one of the things we want, as well as managing the foreign exchange, he said.

Mr. Wale Oyerinde, Director General of the Nigeria Employers' Consultative Association, also spoke and emphasized the necessity for the next governor of the CBN to handle the nation's foreign exchange crisis.

The incoming CBN governor, without a question, faces a challenging challenge, he added. But the first step would be to address the ongoing FX problem, which is the main driver of high inflation and rising interest rates in the economy.It is likely that addressing the FX problem would lower interest rates and inflation. In this context, it's critical to assess the actual position of Nigeria's foreign reserves in order to resolve the recent JP Morgan debate that the reserves are $3.9 billion, not $33 billion as stated by the previous CBN management, and to ascertain the likelihood that the reserves will be used for intervention.