The Northern Ethnic Youth Group Assembly (NEYGA) has voiced concerns over proposed amendments to the Central Bank of Nigeria (CBN) Act 2007, which would require the CBN to submit its budget for approval by the National Assembly. In a statement from its spokesperson, Mallam Ibrahim Dan-Musa, NEYGA described the move as a potential threat to the independence of the CBN.
The group emphasized that the independence of the CBN is crucial for effectively managing Nigeria’s monetary policy. They warned that allowing political interference could undermine the bank’s capacity to stabilize the naira, which has shown signs of recovery recently.
The Arewa Group further stressed that the current CBN Act is robust and sufficient for ensuring the central bank can carry out its duties without undue external influence. They urged lawmakers to reconsider the proposed amendments to avoid destabilizing the nation’s economic recovery efforts.
“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.
