Civil Society Groups Warn Against Proposed Amendment to CBN Act, Citing Threats to Autonomy

Civil society groups, represented by the Conference of Civil Societies (CCS), have raised concerns over the proposed amendments to the Central Bank of Nigeria (CBN) Act, warning that such changes could weaken the autonomy of the bank. Aligning with the stance of the International Monetary Fund (IMF), the coalition urged the National Assembly to resist measures that could undermine the effective management of the economy.

Speaking at a press briefing in Abuja on Monday, the Chairperson of the Conference of Civil Societies, Adams Otakwu, highlighted the importance of maintaining a vibrant economy supported by an independent central bank. Otakwu stressed the need for the government to prioritize economic stability and refrain from amendments to the CBN Act that might disrupt institutional integrity.

The recent increase in inflation, with the Central Bank of Nigeria raising its monetary policy rate to 26.25%, has intensified concerns about the economic outlook. Against this backdrop, Otakwu emphasized the significance of an autonomous central bank in curbing inflationary pressures.

Expressing apprehension about the proposed amendments, Otakwu cautioned that altering the CBN Act could jeopardize the bank’s autonomy, citing international studies linking independent central banks to effective inflation control. He urged the National Assembly to exercise prudence and refrain from measures that could undermine the CBN’s capacity to manage the economy efficiently.

As the nation approaches the first anniversary of the current administration, Otakwu called for a concerted effort to address economic challenges and cautioned against distractions caused by amendments to the CBN Act. He emphasized the need for careful consideration and thorough deliberation before any changes are made to the existing legislation.

In conclusion, Otakwu urged the media to continue highlighting issues such as exchange rate fluctuations, rising input prices, and security concerns, thereby exerting pressure on fiscal and monetary authorities to fulfill their constitutional mandates in managing the economy effectively.