The Court of Appeal, Lagos Division, yesterday affirmed the judgment of a Federal High Court delivered by Justice Mohammed Idris and held that the Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi has powers
to hire and fire bank directors. Justice Idris had held in his judgment that under Sections 33 and 35 of the Banks and Other Financial institutions Act, the CBN governor has the authority to hire and fire directors of any bank found to be in grave situation.
Delivering judgement in an appeal filed by some aggrieved shareholders of Union Bank against the CBN governor, the appellate court held that the appeal lacks merit and subsequently dismissed it. The Appellate Court, in its lead judgment delivered by Justice Inyang Okoro and unanimously adopted by other justices upheld the judgment of the lower court which was delivered by Justice Idris of the Federal High Court in Lagos. The court affirmed the judgment of the lower court, and awarded N30, 000 costs against the shareholders.
But, the Appellate Court failed to give reasons for arriving at the conclusion saying that the full part of the judgment would be made available to parties. It would be recalled that the aggrieved shareholders – Danson Izedonmwen and Edith Izedonmwen had through their lawyer, Chucks Nnachukwu appealed against the judgment of the lower court arguing that the lower court failed to take cognizance of the dangers inherent in allowing the CBN governor, as a single individual, to take over people’s investment and to have the power to take over any bank at will by sacking and replacing its management with his appointees, who are answerable to him.
The shareholders had noted in their notice of appeal that apart from the dangers of conflicting interest of some individuals who might want to use the CBN governor to take over targeted banks, such power to hire and fire bank directors, would also put the CBN governor in a position of operator and regulator, more so that the Nigerian Deposit Insurance Commission has been empowered under the law to take over the failing banks and to protect public interest. National Mirror gathered that the aggrieved shareholders may have instructed their lawyer, Mr. Chucks Nnachukwu to study the judgment when made available and file appeal to the Supreme Court without delay.
Courtesy: National Mirror