CBN Pensioners, Retirees Protest Proposed Amendment Of CBN Act 2007

Pensioners and retirees of the Central Bank of Nigeria (CBN) have protested the attempt by some members of the National Assembly to amend the CBN Act 2007.

They conveyed their displeasure in a letter dated October 25, 2022, and titled “CBN PENSIONERS AND RETIREES KICK AGAINST THE PROPOSED AMENDMENT OF THE CBN ACT 2007 BY THE NATIONAL ASSEMBLY”

Recall reports emerged that the National Assembly plans to amend the CBN Act 2007 by seeking to remove the CBN Governor as the Chairman of the CBN Board of Directors by bringing in an outsider to occupy that highly exalted position. 

The lawmakers also intend to divest the CBN Board of the power and authority to fix the remuneration of the Board members, as well as mandate the CBN to submit its annual budgets to the National Assembly for approval. 

In the letter sent to Prime Business Africa, the pensioners and retirees said the decision of the National Assembly could stripe the CBN of its independent functions, and politicise the office of the financial regulator. 

“Bringing in an outsider who could be a politician as the Chairman of the CBN Board, the highest decision-making organ of the Bank, might likely lead to the Bank being subjected to unwholesome political influences which could be detrimental to its operational efficiency and, by extension, the national economy.” The letter reads. 

According to the group, “the proposed move to amend the CBN Act 2007 along the lines as highlighted above, would be very il-advised, counterproductive and would even do more damage not only to that institution but the entire Nigerian economy as a whole. 

“For one thing, if those amendments, as being now proposed, are allowed to sail through, it would not only seriously erode the independence of the CBN as an institution but it would further politicize its operations.” 

They explained having same person as central bank governor and chairman of the CBN board is a global best practice, and not only obtainable in Nigeria. 

“The main reason for this is not only to prevent occasional conflicts, quarrels and struggle for power between the institution’s Governor and the would-be outsider-Board Chairman which could adversely affect the institution in the performance of its core mandate, but by allowing the Governor remain the Chairman of the Board. would also insulate the Bank ‘from pressures from political authorities and industry players thereby preserving its institutional autonomy,” the CBN pensioners and retirees opined.