The Chartered Institute of Stockbrokers (CIS) and the Association of
Securities Dealing Houses of Nigeria (ASHON) noted that the bill could
undermine the independence of the CBN.
The legislation, which has passed its second reading and is scheduled for a
public hearing tomorrow, 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.
Critics argue that these changes could introduce political interference in
monetary policy decisions, hampering the central bank’s ability to manage the
economy effectively and objectively.
Oluropo Dada, President/Chairman of the Council of CIS, emphasized the pivotal
role of the Central Bank in maintaining economic stability and preserving
international credibility.
“Safeguarding the independence of the Central Bank of Nigeria is crucial for
aligning with global economic best practices and ensuring decisions are driven
by sound financial principles, free from undue influence,” Dada stated.
Sam Onukwue, Chairman, ASHON, highlighted the potential impact on investor
confidence, saying: “An independent central bank is a cornerstone for
maintaining the country’s standing in the global financial community, which
directly affects investor confidence, credit ratings, and the overall economic
outlook.”
While both organizations acknowledged the merit of some proposed amendments
aimed at enhancing corporate governance and compliance, they stressed the
importance of considering the broader ramifications. “It is imperative to
ensure that fiscal authorities do not encroach upon the central bank’s
operational independence, as this is vital for effective and timely monetary
policy responses,” Dada emphasized.
0 Comments