Amendments: Group urges NASS To Resist Attempt to remove CBN’s Autonomy
The Conference of Civil Societies has warned that many of the proposed amendments to the extant law of the Central Bank of Nigeria (CBN) Act will weaken the bank and threaten its autonomy The civil Societies have, therefore, called on the National Assembly to resist the attempt to deliberately weaken the CBN, adding that attempting […]
The Conference of Civil Societies has warned that many of the proposed amendments to the extant law of the Central Bank of Nigeria (CBN) Act will weaken the bank and threaten its autonomy
The civil Societies have, therefore, called on the National Assembly to resist the attempt to deliberately weaken the CBN, adding that attempting to take away the bank’s autonomy under any guise would be tantamount to throwing spanners into the management of the economy.
Addressing journalists in Abuja, the Chairperson, Conference of Civil Societies, Adams Otakwu, expressed concern about the economy, monetary policy, and its impact on ordinary Nigerians.
Speaking on the anniversary of the present administration, Otakwu noted that Nigerians were desirous of having in place a vibrant economy supported by an independent Central Bank.
He urged the government to focus on fixing the economy and not creating confusion by amending sections of the CBN Act that might weaken the institution.
According to him, “Nigerians in the past one year have had great expectations concerning a major turn around in the economy. Particularly of interest is the rate of inflation, which has continued to rise. Only last week, the Central Bank of Nigeria increased its Monetary Policy Rate to 26.25% to check inflation, which now stands at 33.69%.
“While we, as civil society groups, continue to engage the CBN and the fiscal authorities to improve the fortunes of the economy, we are of the view that having an independent Central Bank in place will help to put inflation under check.
“This is why we would like to sound a note of caution ahead of the proposed amendment to the CBN Act by the National Assembly, which we consider ill-timed.
“Without prejudice to the proceedings of the public hearing at the National Assembly, which we shall be part of on Thursday, May 30, 2024, we, align with the position of the International Monetary Fund (IMF) that many of the proposed amendments to the extant CBN Act will weaken the Bank as its autonomy will be severely threatened.
“Studies worldwide show a direct correlation between independent central banks and adequate checks on inflation. We, therefore, urge the NASS to resist the attempt to deliberately weaken the CBN. Attempting to take away the bank’s autonomy under any guise would be tantamount to throwing spanners into the effective management of the economy.”