Sanusi lacks power to sack bank CEO's- Court

A Federal High Court in Lagos on Thursday said the Governor of the Central Bank of Nigeria, Mallam Lamido Sanusi, lacked the absolute power to sack bank chiefs without disclosing the findings and recommendations of the special examination conducted into the books of the respective banks to the affected directors.


Sanusi had removed some bank directors in the wake of the banking reform exercise of 2009.

The CBN governor had claimed that the removal of the bank chiefs became expedient following the revelations contained in a special examination conducted into the books of all the 24 banks in the country.

Sanusi said the examination showed that the affected directors mismanaged the affairs of their respective banks and also put the banks in grave situation.

According to Justice James Tsoho, though the CBN has power under Section 35 of the Banks and Other Financial Institutions Act to regulate and control the business of banking, when such powers will fundamentally affect interested parties, there should be disclosure.

Justice Tsoho, who ruled on a suit filed by some aggrieved shareholders of Afribank against Sanusi’s action, dismissed the preliminary objections filed by the CBN and its appointed directors, saying the objections could not be sustained in law.

The court held that the shareholders were able to convince the court that there was lack of good faith towards them and Afribank in the exercise of statutory powers conferred on the CBN and its governor.

The shareholders, who filed the suit through their lawyer, Onyebuchi Aniakor, include, Moses Oke, Rasak Mumuni, Akinsanya Sunday, Suleiman Babatunde and Igba Olatomide.

Defendants in the suit include Afribank MD, Nebolisa Arah, and four executive directors of the bank - Nnamdi Anammah, Isaac Alofoje, Joke Giwa and Stephen Adah.

The list of defendants also include Afribank chairman, Osa Osunde; Chkwuemeka Okwuosa, David Lawuyi, Ashim Oyekan, Bala Zakariya ‘U, Rufai Muhammed and the Corporate Affairs Commission.

The CBN had contended that the court lacked jurisdiction to entertain the suit because the affidavit in support of the plaintiffs’ suit did not allege that Sanusi’s action was done in bad faith.

But the court overruled the objection and held that it could not be sustained in law.

The defendants have, however, appealed against the ruling. They have also filed a motion for stay of execution of the ruling.

The case has been adjourned to September 26.

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