NASS suspends CBN amendment Act over misleading report

The Senate Committee on Banking, Insurance and other Financial Institutions has postponed the planned public hearing for an amendment of the Central Bank of Nigeria Act.

A statement signed by Special Adviser to the Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Prof Uche Uwaleke, the bill titled “An Act to Amend the Central Bank of Nigeria Act No. 7 of 2007, being put on hold to allow for further consultations with key stakeholders.

According to Prof Uwaleke, reports that the amendment would strip the Apex Bank of its independence was “completely untrue”.

“My attention has been drawn to a misleading report currently circulating in the media that the National Assembly plans to transfer interest rate decisions from the CBN to a Committee to be chaired by the Minister of Finance.

“This is completely untrue.

“The fact is that the amendment Bill proposes a Coordinating Committee as an institutional framework for the alignment of fiscal and monetary policies. Its aim is neither to usurp the roles of the Monetary Policy Committee of the Bank nor weaken the instrument independence of the CBN.

“For the avoidance of doubt, section 12 of the current Act establishes the Monetary Policy Committee, as well as stipulates its functions and composition. These provisions are all retained in the amendment Bill.

“Be that as it may, let me seize this opportunity to inform you that in view of the controversy this has generated.

“As an objective and reputable media organisation, it would be appropriate to publish the correct position,” Uwaleke said.