The CBN Act guides the operations of the bank
The law governing the operations and functions of Nigeria’s Central Bank, CBN, is the CBN Act of 2007.
Gazetted on June 1, 2007, Section 11 of the act deals with how top officials of the CBN – Governor, Deputy Governor, and Director- can lose their positions or be removed from office.
Subsection 2 of the law is about the conditions that can make a CBN governor ‘cease to hold office.’
The suspended Central Bank Governor, Lamido Sanusi, claims President Goodluck Jonathan violated this section in carrying out the suspension. He has vowed to challenge the suspension in court while obeying the directive.
Section 11 of CBN Act:
(1) A person shall not remain a Governor, Deputy Governor or Director of the Bank if he is
(a) a member of any Federal or State legislative house; or
(b) a Director, officer or employee of any bank licensed under the Banks and Other Financial Institutions Act.
(2) The Governor, Deputy Governor or 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 criminal offence by a court of competent jurisdiction except for traffic offences or contempt proceedings arising in connection with the execution or intended execution of any power or duty
conferred under this Act or the Banks and Other Financial Institutions Act;
(c) is guilty of a serious misconduct in relation to his duties under this Act;
(d) is disqualified or suspended from practicing his profession in Nigeria by order of a competent authority made in respect of him personally;
(e) becomes bankrupt;
(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 be so removed.