The legislative initiative to modify the Central Bank of Nigeria (CBN) Act No. 7 of 2007 has been paused by the National Assembly Committee on Banking, Insurance, and Other Financial Institutions. This suspension arises from the need for further deliberation amidst growing concerns and misinterpretations evident in public discourse and media reports.
Clarification on the matter was provided by Professor Uche Uwaleke, a Special Advisor to the Chair of the Senate Committee involved with the proposed legislative adjustments. Uwaleke addressed circulating narratives erroneously suggesting that the Senate was attempting to transfer the CBN’s interest rate decision-making powers to an external committee headed by the Minister of Finance.
He stated unequivocally, “This is completely untrue.” The amendment in question aims to establish a Coordinating Committee, purposed to synchronize fiscal and monetary policies. It is not intended to interfere with the roles of the CBN’s Monetary Policy Committee (MPC), whose function and composition, as delineated in Section 12 of the existing CBN Act, are preserved untouched in the proposed amendment.
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In light of the controversy and confusion surrounding the bill, the National Assembly has chosen to delay the entire amendment process. This period will be utilized for expansive consultations. Uwaleke emphasized this move and requested a rectification of the record across media platforms to reflect the accurate status quo and dispel any misleading notions.
The envisioned committee, as per Uwaleke’s commentary, is not designed to undermine the independence of the Central Bank or to replace the intrinsic functions of the CBN’s MPC; it is to foster a more cohesive approach between Nigeria’s fiscal and monetary governance.
