Political situation in Nigeria

Former President Muhammadu Buhari and Central Bank Governor Godwin Emefiele launch a digital currency in 2021. Sunday Aghaeze / AP  

 

Political situation in Nigeria 

Nigeria's central bank governor has been fired and arrested  

 

Nigeria's newly elected president Bola Ahmed Tinubu has dismissed the head of the country's central bank, Godwin Emefiele, who held the job for nearly ten years, writes AFP. Emefiele has subsequently also been arrested by the country's security forces. 

 

The government has confirmed the arrest, saying it is part of an investigation into planned economic reforms, without going into details.  

 

Emefiele has received harsh criticism, among other things, since the country's banknotes were replaced with new ones ahead of this year's elections, in order to make corruption more difficult. The reform led to widespread cash shortages in a country where many people use cash. He is also considered to have done too little to stem inflation. 

 

Emefiele has also previously tried to challenge Tinubu to become the party's APC presidential candidate.  

 

Market in Nigeria's largest city, Lagos. Sunday Alabama / AP  

 

Analyst: Expected decision - positive for the market  

 

That Nigeria's central bank governor Godwin Emefiele has been fired and arrested is the culmination of a months-long investigation, AP writes. The country's security forces tried to arrest him back in December but were then denied in court.  

 

Lagos-based financial analyst Abiola Gbemisola is not surprised. He says that it was expected that Emefiele would not remain in the country after the change of husband. He points out, among other things, that Emefiele pushed the country's inflation, rather than stopping it. 

 

- The fact that he is now gone is positive for the financial market, now we can expect something else, says Gbemisola.