The dangerous gambit to shackle CBN’s independence

The National Assembly’s recent move to amend the Central Bank of Nigeria (CBN) Act, aimed at stripping the apex bank of its independence, has sparked widespread concern and outrage. This action, widely considered a brazen power grab, threatens to undermine the very foundations of Nigeria’s economic management, and could have far-reaching and devastating consequences.

The CBN’s independence is sacrosanct, and for good reason. It allows the bank to take tough decisions, free from political interference, to ensure economic stability and growth. The CBN’s autonomy has been instrumental in maintaining Nigeria’s economic stability, and has earned the country a reputation as a beacon of economic sanity in Africa.

But the National Assembly’s proposed amendment seeks to reverse this, by subjecting the CBN to the whims and caprices of politicians. This is a recipe for disaster, and a clear attempt to politicise the economy. It is a stark reminder of the dangers of unchecked power, and the lengths to which some individuals can go to consolidate their grip on the country.

The consequences of this move are dire. It will lead to inflation, currency devaluation, and economic instability. It will also undermine investor confidence, and scare much-needed foreign investment. The CBN’s independence is what has maintained Nigeria’s creditworthiness, and any attempt to compromise it will have far-reaching consequences.

Furthermore, this move is a clear violation of international best practices. Central banks around the world are independent, and for good reason. It allows them to take decisions that are in the best interest of the economy, without fear or favour. The National Assembly’s move, in my mind’s eye, is a clear departure from this norm, and a dangerous precedent that could have far-reaching consequences.

The timing of this move is also suspect. With the country facing numerous economic challenges, the National Assembly should be focused on supporting the CBN’s efforts to stabilise the economy, rather than whittling their powers. It now looks like a clear case of the fox guarding the henhouse, and a stark reminder of the dangers of unchecked power.

In conclusion, the National Assembly’s move to strip the CBN of its independence is a dangerous gambit that threatens to undermine Nigeria’s economic stability. It is a clear attempt to politicise the economy, and a violation of international best practices. The consequences of this move will be dire, and could have far-reaching and devastating consequences. We urge the National Assembly to reconsider this move, and to prioritise the interests of the economy over what is now widely seen as their own selfish desires.

The CBN’s independence is not just a technicality, it is a matter of economic life and death. It is what has kept Nigeria’s economy stable, and what will keep it stable in the future. We must not let political expediency undermine our economic stability. We must stand up against this power grab, and defend the CBN’s independence. My honest view. 

 Dambatta writes from Kaduna