As debates intensify over proposed amendments to the Central Bank of Nigeria (CBN) Act, prominent economic experts have raised concerns on potential threats to the nation’s economic stability and growth prospects.
The President of the Chartered Institute of Bankers of Nigeria (CIBN), Professor Pius Oladeji Olanrewaju and former Director General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, have cautioned against the proposed changes. These include subjecting the CBN’s budget to National Assembly approval and establishing a new Coordinating Committee for Monetary and Fiscal Policies, which could open the door to political interference in monetary policy decisions.
Professor Olanrewaju stated, “The previous CBN governor’s shortcomings do not justify revoking the CBN’s autonomy. Globally, central bank autonomy is necessary, though some checks and balances are needed.” He warned that the proposed amendments risk handing control of the CBN to parliament, stating, “We are going for overkill. The four proposed amendments are unnecessary at this point.”
Muda Yusuf stressed caution about subjecting the CBN’s budget to National Assembly approval, stating, “We must be careful not to undermine the CBN’s autonomy. If compromised, it would affect its effectiveness.” He advocated focusing on appointing competent professionals with strong character to lead the CBN rather than parliamentary oversight of its budget.
The public hearing on the amendments, initially scheduled for May 30th, 2024, has reportedly been postponed amid the growing chorus of opposition from economic experts concerned about safeguarding the central bank’s independence and promoting macroeconomic stability.
