CBN Act Amendment: Look Beyond Sanusi, Analyst Urges National Assembly

A financial consultant, Eddie Osarenkhoe has cautioned the National Assembly not to allow their grouse with the governor of the Central Bank of Nigeria (CBN), Lamido Sanusi to influence their judgements in seeking the amendment of the act establishing the apex bank.

Speaking on Wednesday as a guest on Channels Television’s breakfast programme, Sunrise Daily, Mr Osarenkhoe said rather than act on the spur of the moment, the National Assembly should consider and seek to improve the systems and processes in the CBN.

“The same CBN have been there all along and they (the National Assembly) never raised the eyebrow they’ve raised. Maybe it is because there was change in the headship and he (Mr Sanusi) came out with some strong policies which actually shook the economy that is why there was this uproar,” he said.

Two bills – one before the Senate and the other in the House of Representatives – seek to amend the CBN Act Cap C4, Laws of the Federation of Nigeria, 2004, to compel the CBN to submit its annual budget to the National Assembly and for matters connected thereto.

While the Senate’s bill was published in the National Assembly Journal Volume 8, number 54 of April 13, 2012, and registered as Senate Bill 75, the House of Reps’ bill seeks to amend Section 6(2) of the CBN Act (2007) to remove the CBN governor as chairman of the board and exclude the deputy governors and directors as members of the board. It was published in the same journal four days after – Volume 8, number 62, dated April 17, 2012, and dubbed HB.12.03.276.

Both bills seek to divest the board of the CBN of its powers to appropriate and approve the annual budgetary estimates of the bank, contrary to Section 6 (3) (a) of the CBN Act 2007 which stipulates that the board shall be responsible for the consideration and approval of the annual budget of the bank.