Monday, 22 October 2012

Stakeholders Condemn Moves To Cut Powers Of CBN Gov

Attempt by the House of Representatives to amend the Central Bank of Nigeria Act has suffered a set back following the rejection of the plan by stakeholders.

Major players  in the banking and financial sector described the amendment  proposed by the House of Representatives as not in the interest of the sector.

The ammendment recommend the removal of the Governor of the CBN as the chairman of the board of the  bank.

Also the ammendment plans to remove the deputy governors and executive directors of the bank from the board.

At a publIc hearIng on the bIll, former governors of the apex bank and other partIcIpants at the event all agreed that the proposed amendment will weaken the autonomy of the Central Bank. 

Deputy Governor of the CBN, Tunde Lemo, who spoke agaInst the amendment, said it is necessary the for the apex bank to be truly independent if it is to carry out it's core functions. 

Former heads of the apex bank, Adamu Ciroma and Joseph SanusI, said the amendment was not necessary as it may send wrong sIgnals to Investors and other fInancIal operators.

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