THEmounting opposition against the on-going attempt by the Senate to amend the Central Bank of Nigeria (CBN) Act should not be altogether unexpected. Apart from the suspicions ' rightly or wrongly ' underlying the motive of the lawmakers' bid, the CBN itself has seemed to thrive under one controversy after another. It is important nevertheless that the crux of the Senate's action is not trivialised, while at the same time, the authority of the Central Bank, as the chief regulator of the nation's banking system, should not be undermined.On the one hand, the Senate, which has commenced public hearing in what some people perceived as the process of whittling down the CBN powers, assured that the hearing was not meant to witch-hunt the institution, but rather to strengthen the Act in the interest of the country. On the other hand, the CBN suspects that the Senate's plan is to reduce or completely remove its autonomy and put the apex bank under the watch of politicians. This move, the CBN has contended, would make Nigeria an exception to global best practice, among other negative repercussions.The CBN's apprehension is informed by reports that the bill seeking to amend its enabling Act of 2007 is meant to make the Central Bank seek authorisation from the National Assembly before spending any money. That, if true, may necessitate an amendment of section 6(3) of the Act, which states that, 'the Board shall be responsible for the consideration and approval of the yearly budget of the bank'.The alarm of the CBN to this speculated amendment is not unfounded, having regard to the salient import of the provision, to the relative freedom currently enjoyed by the bank. If it is pertinent to ask why the Senate or anyone else should ever contemplate such a drastic restructuring of the apex bank, it should be relevant to recollect that the CBN, through its Governor, Sanusi Lamido Sanusi has overreached itself many times.First, Sanusi was quick to criticise the profligacy of the National Assembly and their audacity to appropriate a large chunk of the country's revenue for their personal upkeep. That in itself is instructive and useful for the nation's war against corruption, mismanagement and the unwarranted high cost of governance. But Sanusi appeared too sensitive to subject the CBN's financial expenditure, including his own remuneration, to public scrutiny. This much was evident in one of the altercations between him and the lawmakers.Also, the CBN's unilateral decision to donate N100 million to victims of Boko Haram bombings in Kano in January 2012, remained a sore point. Although the bank's authorities sought desperately to convince Nigerians that its action was well-motivated and within the rightful exercise of its enabling laws, it was unable to eliminate a suspicion of personal link or political motivation on Sanusi's part.However, while Sanusi deserves to be berated for seemingly putting so high a financial premium on issues that are best left to other arms of government; his action is not enough to reduce the CBN to an appendage of government or politicians. Laws should never be enacted or modified on personal basis but in the interest and benefit of the public.There is logic in Sanusi's argument, at the public hearing on the amendment, about the global trend to insulate Central Banks from the vagaries of politics and subsequently to protect the national economy. If indeed the country is desirous of a stable financial system in an increasingly intricate economy, the Central Bank should be able to act proactively, particularly in times of crisis. This it can do if it is financially independent.If has been argued that the CBN budget should not be subjected to National Assembly approval, to free its operation from needless encumbrances. This remains an ideal that should nevertheless be balanced by some checks, to prevent abuse. The Central Bank should be allowed to commit to long-term policies against the penchant of politicians to prefer short-term measures.It is envisaged that autonomy for the CBN is capable of increasing policy credibility and transparency. But the bank is yet to demonstrate this; just as it is yet to appropriately position Nigeria as a major player in the African economic integrations. These should be the CBN's primary focus.Importantly too, while financial autonomy is desirable for the CBN to prevent political abuse of fiscal policies, the bank should appreciate that such autonomy comes with responsibility of transparency in action, full disclosure and accountability. Had these indices been fully taken into consideration during the CBN's reform of the banking industry, perhaps much of its action would not have been embroiled in controversy. Sanusi, for instance, should tell Nigerians what his remunerations are, as well as those of his officials. This is not an issue to be put away in a secret file.There is merit again in preserving the CBN's financial autonomy, against the backdrop of the abuses visited on the apex bank under military dictatorships when its autonomy was seriously compromised. The bank's experience in that era buttresses the view of the International Monetary Fund (IMF) Country Chief and Resident Representative in Nigeria, Mr. Scott Rogers, that removing the autonomy would weaken the bank. In particular, the IMF chief pointed out that if the autonomy is removed, CBN officials would be afraid to take policy decisions that might be unpleasant to the interest of some persons in power, even where such policies will benefit the public.In reviewing the CBN Act therefore, the task before the Senate is not to make the Central Bank an appendage of government or dependent on the National Assembly before performing its duty. Rather, the duty is to strengthen the bank to improve the stability in the country's financial system, discourage off-handed decisions that provoke needless controversy at the expense of protecting the country's banking sector, and above all promote transparency and accountability in the apex bank.
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