CBN will be limited without autonomy — Northern Youths

The Northern Ethnic Youth Group Assembly (NEYGA) has expressed concerns over the proposed amendments to the Central Bank of Nigeria (CBN) Act of 2007, which they described as a direct threat to the bank’s independence.

The amendments, which would require the CBN to submit its budget for National Assembly approval, have raised alarms within the group.

In a statement issued by its spokesperson, Mallam Ibrahim Dan-Musa, NEYGA warned that the changes could destabilize the CBN and undermine its ability to effectively manage the nation’s monetary policy.

The group fears that political interference could hinder the CBN’s efforts to stabilize the naira, which has shown signs of recovery in recent months.

“The autonomy of the Central Bank is crucial to maintaining economic stability,” said Dan-Musa.

“Without it, the CBN will become ineffective in managing the country’s monetary policies, and political interests will take precedence over economic well-being.”

A key point of contention is the proposal to create a Coordinating Committee for Monetary and Fiscal Policies, which the group believes would erode the CBN’s authority and allow undue political influence.

They also rejected the idea of appointing an external figure to lead the bank’s monetary policy committee, arguing that this could further compromise the bank’s independence.

The Arewa group urged Nigerians to oppose the amendments, advocating for a governance model similar to those in Ghana and South Africa, where central bank autonomy is constitutionally protected.

They stressed that preserving the CBN’s independence is vital for shielding Nigeria’s economy from the damaging effects of political interference, which, they caution, has already weakened the country’s security agencies.

The group called on the National Assembly to reconsider the proposed amendments to avoid jeopardizing the financial sector.