In response to the Nigerian Senate’s intent to amend the CBN Act to restrict the Governor’s excessive powers, finance and economic experts yesterday urged the Senate to proceed carefully to prevent undermining the apex bank’s independence and potentially crippling monetary policy and the broader economy.
Reacting to Senate President Godswill Akpabio’s hint of a possible amendment to the current CBN Act as a means to control the excesses of its Governor, former Finance Commissioner of Imo State and professor of capital markets, Uche Uwaleke, advised that any amendment should aim to bolster the CBN’s independence rather than weaken it. He cautioned against allowing politicians excessive influence over the banking sector regulator, stating this would be dangerous and contradict international standards.
Echoing this sentiment, Dr Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, suggested that the ongoing investigation into the activities of the CBN under the suspended Governor, Mr Godwin Emefiele, might be driving the Senate’s rush to adjust the CBN Act. He underscored the importance of transparency and involving experts in any amendment process.
David Adonri, Vice-President of Highcap Securities, argued that the Senate’s actions should be allowed to proceed. He believes the Act should be amended to more clearly define the CBN Governor’s authority, without compromising the bank’s autonomy as a monetary authority.
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