The Chartered Institute of Bankers of Nigeria (CIBN) and the Centre for the Promotion of Private Enterprise (CPPE) have faulted the proposed amendments to the Central Bank of Nigeria (CBN) Act.
They posited that such an amendment will undermine the autonomy of the apex bank.
It would be recalled that a bill seeking to amend the CBN Act sponsored by Francis Waive, a lawmaker representing Ughelli north, south, and Udu federal constituency of Delta state recently passed second reading at the House of Representatives.
Similarly, on February 27, the bill to amend the CBN Act passed a second reading in the senate.
Some proposed amendments to the act include subjecting the CBN’s budget to national assembly approval and establishing a new coordinating committee for monetary and fiscal policies.
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Speaking in recent interviews, Pius Olanrewaju, CIBN president, and Muda Yusuf, chief executive officer of CPPE, said the amendment will undermine CBN’s autonomy.
Speaking on the proposed bill, Olanrewaju said the erstwhile CBN governor’s shortcomings do not justify revoking the apex bank’s autonomy.
Olanrewaju said the central bank autonomy is necessary globally, “though some checks and balances are needed”.
He warned that the proposed amendments run the risk of handing control of the CBN to parliament.
“We are going for overkill. The four proposed amendments are unnecessary at this point,” he said.
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On his part, Yusuf, chief executive officer, Centre for the Promotion of Private Enterprise (CPPE), stressed the need to be cautious about subjecting the CBN’s budget to national assembly approval.
“We must be careful not to undermine the CBN’s autonomy. If compromised, it would affect its effectiveness,” he said.
Yusuf said the emphasis should be on appointing competent professionals with strong character to oversee the CBN rather than parliamentary oversight of its budget.
The public hearing on the amendments, initially slated for May 30, has been suspended by the senate committee on banking, insurance and other financial institutions.
Tinuke Ogunrinde, the clerk of the committee, said the public hearing was postponed due to conflicting schedules and a clash of national events to mark the first-year anniversary of President Bola Tinubu’s administration.
