The Senate has decided to suspend the planned public hearing on the amendment to the Central Bank of Nigeria (CBN) Act 2007 in response to the controversy and public pressure.
The suspension aims to allow for further consultations and input from key stakeholders.
The Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Tokunbo Abiru, clarified that the aim of the amendment bill is not to undermine the roles of the Monetary Policy Committee of the CBN or weaken the independence of the CBN.
The bill proposes a coordinating committee as an institutional framework for the alignment of fiscal and monetary policies.
In light of the controversy surrounding the bill, the committee has postponed the planned public hearing to accommodate further consultations with key stakeholders.
The controversial bill seeks to modify the CBN’s autonomy by subjecting its budget to National Assembly approval and establishing a new Coordinating Committee for Monetary and Fiscal Policies.
Economic and financial experts have expressed concerns that these changes could introduce political interference in monetary policy decisions, potentially impacting the central bank’s ability to manage the economy effectively and objectively.
The proposed amendments include the establishment of a seven-member Coordinating Committee for Monetary and Fiscal Policies to be chaired by the Minister of Finance, setting the tenure of CBN governor and deputy governors at a single non-renewal term of six years, and other significant changes to the operations and oversight of the CBN.
The proposed amendments have sparked mixed reactions from stakeholders, with some expressing support for the bill's intention to strengthen corporate governance and compliance, while others have raised concerns about the potential negative impact on the independence of the CBN and the overall economy.
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