Group Rejects Proposed Amendments To CBN Act

The Northern Ethnic Youth Group Assembly (NEYGA) has expressed worries over lawmakers’ decision to tamper with the CBN Act 2007 as amended, which is considered very robust.

The group described the amendments, which would require the CBN to submit its budget for National Assembly approval, as a direct threat to the bank’s independence.

In a statement issued by its spokesperson, Mallam Ibrahim Dan-Musa, the Arewa Group expressed concern that the proposed changes could destabilise 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 stabilise 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.”

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 also 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.

The group called on Nigerians to oppose the proposed amendments, advocating for a governance structure similar to those in countries like Ghana and South Africa, where central bank independence is constitutionally guaranteed.

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.

The group cautioned that the same political interference that has weakened the effectiveness of security agencies in Nigeria could spread to the financial sector if the amendments are passed, urging the National Assembly to reconsider the proposals.