Economists back Soludo, insist on CBN autonomy

Posted by admin CBN (Central Bank of Nigeria), Latest Politics Sunday, May 27th, 2012

May 27, 2012 by Leke Baiyewu 24 Comments

former CBN Governor, Professor Charles Soludo
| credits: File copy

Economists have warned the Federal Government against removing the autonomy enjoyed by the Central Bank of Nigeria.

According to them, the bank plays a central role in the economy and can be exposed to anarchy.

A former Governor of the bank, Prof. Charles Soludo, had warned against the removal of the bank’s autonomy. He spoke against the backdrop of the moves by the National Assembly to amend the autonomy of the apex bank as guaranteed by the CBN Act 2007.

Both chambers of the legislature have set in motion the process of amending the Act, principally to reduce the powers of the board of the bank.

Former Vice-Chancellor, Crescent University, Prof. Sheriffdeen Tella, however expressed fears about the plan.

He said, “The CBN should remain independent to attend to issues in the sector. However, there should be a reduction of its political leaning.”

Similarly, a senior lecturer in the Department of Economics, Ahmadu Bello University, Prof. Usman Muttaka, warned that removal of the autonomy could jeopardise the economy.

He said, “Autonomy and interference are two issues that depend on the type of government we have. Where there is rule of law and the government respects it, there must be limitations on its interference in the affairs of the bank.”

On the contrary, the Chief Executive Officer, Economic Associates, Dr. Ayo Teriba, argued that there was a limit to the independence the bank could enjoy. He further argued that there was no country where the central bank had full autonomy.

He said, “There are always limitations. Full autonomy will not make the CBN accountable but we need accountability. There cannot be full autonomy because the CBN must be accountable to the government and the people.”

The analysts also described the inability of Nigeria to print its currency using the Nigerian Security Printing and Minting Company. They said the country could have saved resources by printing its currency locally

-Punch.wp_posts