THE Central Bank of Nigeria, CBN, warned Wednesday that if the present autonomy being enjoyed by it was removed, the nation’s economy stands the risk of collapsing.

The country’s apex bank also urged the Senate to jettison the move if the nation’s economy must grow and for the realization of the set target of becoming one of the top largest economies of the world in the year 2020, adding that the CBN will be incapacitated once there was no longer the existing autonomy.

Answering questions from the Senate Committee on Banking, Insurance and other Financial Institutions when she appeared for screening for her second tenure in office, the CBN Deputy Governor on Economic Policy, Dr. Sarah Omotunde Alade told the Senators that world over, the autonomy of the Apex Bank was always recognized, adding, ‘’once the autonomy of the CBN is tampered with, then it becomes incapacitated.

It becomes easy for government to then wake up and ask the bank to print more money to meet certain expenditure and the economy collapsed.’’


Meanwhile, the Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Ayo Ademola Adeseun, ACN, Oyo Central has warned that if very drastic action was not taken on the nation’s economy and the present challenges, the next two years will be bad for the country, just as he promised that the National Assembly will continue to support the Central Bank in its move to drive the economy of the country.

Speaking further, the CBN deputy Governor, Mrs Alade while answering question on the $6.9 billion external borrowing being sought by the Federal Government, said ‘’we don’t want the debt to be too much because of the capacity to service it. It is not the loan but what it is used for.

‘’As long as the government is sure that the loan will be used to create employment and pay itself. When we take a loan, the burden should not come back to the government. The quantum of the loan is also an issue’’.

It will be recalled that following a motion by Chairman, Senate Committee on Rules and Business, Senator Solomon Ita Enang, PDP Akwa Ibom North East, the Senate had moved to force the Central Bank of Nigeria, CBN to submit its budget to the National Assembly for scrutiny and approval through a bill that scaled the second reading.

According to the Senate, the Apex Bank cannot arrogate to itself powers it does not have especially where it must keep to itself its expenditure without recourse to the National Assembly for assessment and subsequent nod from the legislators for the bank to go ahead and spend.

http://www.vanguardngr.com/2012/05/nigeria-economy-will-collapse-if-cbn-warns/

CBN must be put under control to avoid the powerful tendency of the CBN Governor

talk true: THE Central Bank of Nigeria, CBN, warned Wednesday that if the present autonomy being enjoyed by it was removed, the nation’s economy stands the risk of collapsing.

The country’s apex bank also urged the Senate to jettison the move if the nation’s economy must grow and for the realization of the set target of becoming one of the top largest economies of the world in the year 2020, adding that the CBN will be incapacitated once there was no longer the existing autonomy.

Answering questions from the Senate Committee on Banking, Insurance and other Financial Institutions when she appeared for screening for her second tenure in office, the CBN Deputy Governor on Economic Policy, Dr. Sarah Omotunde Alade told the Senators that world over, the autonomy of the Apex Bank was always recognized, adding, ‘’once the autonomy of the CBN is tampered with, then it becomes incapacitated.

It becomes easy for government to then wake up and ask the bank to print more money to meet certain expenditure and the economy collapsed.’’


Meanwhile, the Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Ayo Ademola Adeseun, ACN, Oyo Central has warned that if very drastic action was not taken on the nation’s economy and the present challenges, the next two years will be bad for the country, just as he promised that the National Assembly will continue to support the Central Bank in its move to drive the economy of the country.

Speaking further, the CBN deputy Governor, Mrs Alade while answering question on the $6.9 billion external borrowing being sought by the Federal Government, said ‘’we don’t want the debt to be too much because of the capacity to service it. It is not the loan but what it is used for.

‘’As long as the government is sure that the loan will be used to create employment and pay itself. When we take a loan, the burden should not come back to the government. The quantum of the loan is also an issue’’.

It will be recalled that following a motion by Chairman, Senate Committee on Rules and Business, Senator Solomon Ita Enang, PDP Akwa Ibom North East, the Senate had moved to force the Central Bank of Nigeria, CBN to submit its budget to the National Assembly for scrutiny and approval through a bill that scaled the second reading.

According to the Senate, the Apex Bank cannot arrogate to itself powers it does not have especially where it must keep to itself its expenditure without recourse to the National Assembly for assessment and subsequent nod from the legislators for the bank to go ahead and spend.

http://www.vanguardngr.com/2012/05/nigeria-economy-will-collapse-if-cbn-warns/

We have a democratic structure on paper that does not translate to democratic practices on the ground and where our government is structured on democratic ideals, the principles and actions of the society itself is far from democratic.

It is well established that the constitution empowers the CBN to operate its budget independent of an external supervision or approval. The intent of the drafters may have been different and initially meant to subject CBN to oversight by NASS, but unfortunately that intent was not communicated in text. The CBN has upper hand on this one and is lessons learnt for the politicians to pay attention and do due dilligence when drafting or passing bills into law.

Outside of what CBN voluntarily submits to, there is no statutorily binding power obligating a compliance to scrutiny by an external authority.

C'est Finis!

Can this man for once stop chasing shadows and face reality? If you're doing your job very well, why will you be threatened by the action of autonomy? SLS, please it's time to shut it and concentrate on your job. I just can't wait for 2013 to come by, when your tenure finally expires, NO RENEWAL.