SOLUDO WARNS AGAINST REVIEWING CBN AUTONOMY

By Yinka Kolawole
Immediate past Governor of the Central Bank of Nigeria, CBN, Prof. Chukwuma Soludo, has warned against moves that could curtail the autonomy of CBN as guaranteed by the CBN Act 2007.

According to him, such a move could jeopardise the effectiveness of monetary policy and management of the macro-economic framework in Nigeria.

He said: 'The survival of CBN as an institution is at the heart of the survival of the Nigerian economy.'

Soludo was speaking at the sent-forth dinner organised by CBN in his honour at the weekend, against the backdrop of the ongoing moves in the National Assembly to amend some vital sections of the CBN Act 2007 which grant both administrative and instrument autonomy to the apex bank in the management of the economy. He warned that any attempt to remove the autonomy of the bank will lead to 'ominous' consequences.

The former CBN boss decried a situation in which a disagreement with an individual could lead to the destruction of the entire institution and, therefore, joined in the plea with the National Assembly members to have a 'constructive dialogue' over the matter.

Soludo said: 'In order to avoid going to the other extreme, the institution of the CBN must be preserved no matter the level of disagreement.'

It will be recalled that both chambers of the National Assembly have set in motion the process of amending the CBN Act 2007, principally aimed at diluting the powers of the board of the bank.