Nigeria’s DSS arrests apex bank exec

The governor of Nigeria’s Central Bank, Godwin Emefiele, has been arrested shortly after his suspension from office by the country’s newly elected president, announced authorities on Saturday.

Nigeria’s secret police stated that Emefiele is currently in custody for investigative purposes, though no further details were provided.

Bola Tinubu, the country’s new president, suspended Emefiele from his role as the central bank governor on Friday evening, ending his nine-year tenure overseeing monetary policy in Africa’s largest economy and most populous nation.

Emefiele’s suspension follows an ongoing investigation into his office and planned reforms in the financial sector, according to a statement issued by the Secretary to the Government of the Federation. As a result, Folashodun Adebisi Shonubi, a deputy governor at the bank, has assumed the position of acting governor.

The arrest of Emefiele marks the culmination of several months of scrutiny by Nigeria’s Department of State Services. In December, the secret police attempted to apprehend him on charges of terrorism financing and economic crimes, but a local court rejected the request due to a lack of evidence. It remains unclear if new findings emerged during the investigation.

Financial analysts noted that Emefiele’s removal from office did not come as a surprise, citing controversial policies he introduced in recent months.

During Emefiele’s tenure, Nigeria’s economy faced challenges such as a weakened currency due to the foreign exchange crisis and a soaring inflation rate, reaching a near-two-decade high of 22.2% in April.

The central bank’s decision to introduce newly designed currency notes, replacing the local naira, resulted in economic hardship for many Nigerians and impacted voter turnout in the February election. Subsequently, authorities were compelled to reintroduce the old banknotes that were being phased out.

Gbemisola expressed optimism about Emefiele’s removal, stating, “His dismissal is a positive development for the financial market, and we can now anticipate a change in approach.”