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Akpabio calls for review of CBN Act

Senate President Godswill Akpabio raised concerns on Tuesday, August 01, 2023, about the legislation governing the Central Bank of Nigeria (CBN), calling for a review of the existing Act.
Senate President Godswill Akpabio [Tope Brown]
Senate President Godswill Akpabio [Tope Brown]

Senate President Godswill Akpabio raised concerns on Tuesday, August 01, 2023, about the legislation governing the Central Bank of Nigeria (CBN), calling for a review of the existing Act.

The call was made during a ministerial screening session at the Senate, where nominee Adebayo Adelabu expressed the need for new laws to establish oversight of the apex bank.

Adelabu, a former CBN Deputy Governor on Operations, emphasised the necessity of "subtle oversight" by the Economic Management Team. He proposed that this team, consisting of key members of the government and economic advisors, should scrutinise certain decisions made by the central bank.

The Economic Management Team, chaired by the Vice President of Nigeria, includes prominent figures such as the Ministers of Finance, Budget and National Planning, State for Budget and National Planning, Industry, Trade and Investment, Agriculture, and Information and Culture, as well as the CBN Governor, Special Adviser to the President on Economic Matters, and Directors-General of the Budget Office, the Debt Management Office, and the National Bureau of Statistics.

In response to Adelabu's suggestion, Senate President Godswill Akpabio stressed the importance of revisiting the CBN Act. He remarked, "I think this is food for thought for distinguished senators, and that means we must revisit the act that set up the CBN because most of the problems we are seeing cannot be answered by him but he cannot stand here and condemn the very institution to which he belongs."

Akpabio highlighted the significance of proper oversight and monitoring of the CBN, especially considering the disagreements among its members regarding certain decisions.

The lack of adequate oversight was considered a contributing factor to the series of heavily criticised decisions by the CBN, including the controversial naira redesign policy during the 2023 general election campaigns.

One of the most notable critics of the CBN's decisions was the former Minister of Finance, Zainab Ahmed. She publicly expressed dissatisfaction with the CBN's failure to consult her ministry before implementing the redesign of the ₦200, ₦500, and ₦1,000 banknotes and discontinuing the old bills within an unprecedented three-month window.

These decisions have reportedly led to difficulties for the now-suspended CBN Governor, Godwin Emefiele, who is currently facing a two-count charge of illegal possession of firearms and ammunition at a Federal High Court in Lagos State.

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