In a move that seems to contravene the law, President Goodluck Jonathan Thursday suspended Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi. The CBN Act is silent on suspension of the governor but states that the president can remove the CBN governor with two-third majority concurrence from the legislature.

The President has already forwarded the name of the current Group Managing Director of Zenith Bank, Mr. Godwin Emefiele to the Senate for confirmation as the next CBN governor.

Sanusi had been caught in a web of controversy in recent months with the Presidency, National Assembly, Ministry of Finance and the Nigerian National Petroleum Corporation (NNPC)  all of whom he accused of one form of fraud or another.  He had already hinted he would not seek a renewal of his tenure which lapses this June. His tenure has been eventful and revolutionary but also controversial. He was outspoken and critical of the Presidency and other arms of government. He remains the only CBN governor to have jailed top bankers hitherto considered untouchables. He exposed corruption and rot in the banking sector and much more in the oil and gas sector.

Sanusi, who was in Niger Republic on official assignment at the time his dismissal was announced, told CNBC that he was unaware of what the president’s office was referring to, questioning the legality of his dismissal.

“I don’t know what they are talking about. When I come back I will see what those allegations are,” he told CNBC Africa.

“There is also the legal question of (the) president, who does not have the legal authority to remove the central bank governor. Even if I challenged it I will not go back to the job, but I think it would be in the interest of the institution for the court check if the president has the power,” he said.

Sanusi added that he hoped the news would not harm the Nigerian economy, as the bond market closed unexpectedly and the Nigerian naira spiked to 169 to the dollar.

“I also hope the position of the central bank will be protected. I have been fortunate to do some good work on the banks in terms of stability, I would not want to see all of that unraveled,” he said.

Commenting on the newly installed deputy Sarah Alade, he said “I think she is a very competent person, I have every confidence in her, I am very happy for her. Like I said I have no regrets, no ill feelings. I am happy and proud of what I have done,” he said.

Hours after his suspension, the House of Representatives went into a frenzy of commotion with some members vehemently opposing the suspension while others welcomed it.

The Presidential statement announcing the suspension of Sanusi states: “Having taken special notice of reports of the Financial Reporting Council of Nigeria and other investigating bodies, which indicate clearly that Mallam Sanusi Lamido  Sanusi’s tenure has been characterized by various acts of financial recklessness and misconduct which are inconsistent with the administration’s vision of a Central Bank propelled by the core values of focused economic management, prudence, transparency and financial discipline;

“Being also deeply concerned about far-reaching irregularities  under Mallam Sanusi’s watch which have distracted the Central Bank away from the pursuit and achievement of its statutory mandate; and

“Being determined to urgently re-position the Central Bank of Nigeria for greater efficiency, respect for due process and accountability, President Goodluck Ebele Jonathan has ordered the immediate suspension of Mallam Sanusi Lamido Sanusi from the Office of Governor of the Central Bank of Nigeria.

“President Jonathan has further ordered that Mallam Sanusi should hand over to the most senior Deputy Governor of the CBN, Dr Sarah Alade who will serve as Acting Governor until the conclusion of on-going investigations into breaches of enabling laws, due process and mandate of  the CBN.

“The President expects that as Acting Governor of the Central Bank, Dr. Alade will focus on the core mandate of the Bank and conduct its affairs with greater professionalism, prudence and propriety to restore domestic and international confidence in the country’s apex bank.

“The Federal Government of Nigeria reassures all stakeholders in Nigeria’s financial and monetary system that this decision has been taken in absolute good faith, in the overall interest of the Nigerian economy and in accordance with our laws and due process”.

Hours after his suspension, the Naira made a rebound in the money market. Financial experts believe that in the coming weeks, the Naira is likely to stay strong.