The Northern Ethnic Youth Group Assembly (NEYGA) has expressed worry over the decision of lawmakers to tamper with the CBN Act 2007, as amended, which they consider robust.
The amendments, which would require the CBN to submit its budget for National Assembly approval, have been described by the group as a direct threat to the bank’s independence.
The group, through a statement by its spokesperson, Mallam Ibrahim Dan-Musa, expressed concern that the proposed changes could destabilise the CBN and weaken its ability to effectively manage the country’s monetary policy.
It cautioned that political interference in the bank’s operations would hinder its efforts to stabilise the Naira, which has shown signs of recovery in recent months.
“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 argues 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.
It further called on Nigerians to oppose the proposed amendments, advocating a governance structure similar to what is obtainable in 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.
It 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.