Northern Group Rejects Proposed Amendments to CBN Act, Cites Consequences
- The proposed amendments to the CBN Act of 2007 by the National Assembly have stirred a fresh debate in the polity
- In a statement on Saturday, the Northern Ethnic Youth Group Assembly (NEYGA) opposed the move by NASS and shared key concerns
- The proposed amendments include requiring the CBN to submit its budget for National Assembly approval and establishing a Coordinating Committee for Monetary and Fiscal Policies, which NEYGA believes would undermine the bank’s autonomy
Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.
The Northern Ethnic Youth Group Assembly (NEYGA) has expressed concern over the lawmakers' decision to tamper with the Central Bank of Nigeria (CBN) Act 2007 as amended, which is considered very robust.
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Group criticizes proposed CBN amendments
The amendments, which would require the CBN to submit its budget for National Assembly approval, have been described by the group as a direct threat to the bank's independence.
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Recall that the National Assembly in June 2024, bowed to public pressure by suspending the planned public hearing on the amendment to the CBN Act 2007 to allow for further consultations and input from key stakeholders.
The lawmakers committee on banking, insurance and other financial institutions said the suspension followed the controversy generated by the amendment process for the bill titled: ‘An Act to Amend the Central Bank of Nigeria Act No. 7 of 2007.’
As reported by Arise News TV, the chairman of the committee, Senator Tokunbo Abiru, disclosed this in a statement issued on Saturday through his Special Adviser, Prof. Uche Uwaleke.
But in a statement made available to Legit.ng on Saturday, September 14, signed by its spokesperson, Mallam Ibrahim Dan-Musa, the Arewa Group expressed concern that the proposed changes could destabilize the CBN and weaken its ability to manage the country's monetary policy effectively.
The group cautioned that political interference in the bank's operations would hinder its efforts to stabilize the naira, which has shown signs of recovery in recent months.
"The autonomy of the Central Bank is crucial to maintaining economic stability," Dan-Musa said.
"Without it, the CBN will become ineffective in managing the country's monetary policies, and political interests will take precedence over economic well-being."
As reported by The Nation and The Nigerian Tribune, one of the key points of contention is the proposal to establish a Coordinating Committee for Monetary and Fiscal Policies, which the group believes would erode the CBN's authority and open the door to undue political influence.
The group rejected the idea of appointing an external figure to lead the bank's monetary policy committee, arguing that it could further compromise the institution's independence.
According to the Arewa Group, safeguarding the CBN's autonomy is essential for protecting Nigeria's economy from the potentially damaging effects of political interference.
Read more about CBN here:
- New exchange rate as naira reverses gain, crashes by over N90 against US dollar in 24 hours
- CBN leaves Customs FX rates for cargo clearance unchanged
- CBN explains what to do with dormant accounts
CBN gives conditions for IMTOs
Legit.ng reported that the Central Bank of Nigeria (CBN) announced fresh initiatives aimed at increasing naira liquidity and diaspora remittances.
Eligible International Money Transfer Operators (IMTOs) would now have access to naira liquidity through the bank's window, per the CBN's recent circular.
According to the CBN, the initiative aimed to increase access to local currency liquidity and facilitate faster and more effective remittance settlement procedures.
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Source: Legit.ng
