My attention has just been drawn to a back page article published by This Day of Monday October 17, 2022 by Elder Victor Odozi on the ongoing attempt by the Senate to review the 2007 Central Bank Act. Sir. Odozi has again for those who might not know him lived up to expectations going by the depth and quality of this well researched presentation on this ill-advised attempt to tinker with the Central Bank of Nigeria 2007 Act.
For the records Victor Odozi was one cerebral and highly respected Deputy Governor of the Central Bank, whose tenure exceeded the usual maximum span of the tenure of a Deputy Governor which is ten years. If my memory serves me right he was a Deputy Governor for Eleven years. He was generally sought after during his tenure to make incisive presentations on monetary policies at various public fora. And he never failed to deliver and live up to expectations by his often well researched and articulately presented papers.
Reading this latest presentation of his, one is glad to note that despite having now been retired for many years that the fire of his presentation has not dimmed. This presentation particularly the thrust and robustness of his arguments against this ill-advised attempt to tamper with the autonomy of the Central Bank are unassailable and recommended reading for all concerned citizens.
The point as Victor Odozi emphasised in his presentation is that we have traversed this route severally in the past and I could vouch for this observation as I participated in the Senate hearing the last time similar attempt was made to review the Act during the tenure of Sanusi Lamido Sanusi who became the Emir of Kano. What is becoming clear obviously is that whenever the National Assembly feels some dissatisfaction for whatever reasons with the Governor there is this feeling that the Autonomy which the Central Bank enjoys must be the cause and then there will be the push to reduce the power of the Central Bank to curb this audacity.
It must be recalled that Lamido Sanusi had gone to the National Assembly to inform them what burden they represent from the perspective of the toll on the treasury which their overheads represent and how that situation was not sustainable. Thereafter the Senate decide to flex its muscle to drive home to him why he should not dare talk to them as he has done. What followed was an attempt to review the Act to teach him some lessons.
And now the Governor dabbled into the murky waters of Nigerian politics and immediately there is again an attempt to review the Act because the received wisdom is that he was able to act the way he did because of the power he wields as the Governor and as a consequence there is the current attempt to review the Act. In my view that tantamount to applying the wrong cure to a perceived ailment!
The arguments against the suggested amendments could not have been better canvassed as has been done by Victor Odozi. The suggested amendments have remained the same as have been proposed in the past. To appoint a non-executive Chairman for the Board, remove the power the Board has to fix the remuneration of its members and the staff of the Bank, subject its budget for approval by the Senate etc.
In addition to the points well canvassed by Victor Odozi there is also the practical problem of how to estimate the revenue inflow of the Central Bank which comes from sundry unpredictable sources. Therefore any attempt to subject the budget of the CBN to approvals might really only be dealing with mainly the expenditure side of the Budget.
But the major takeaway here is that we must not turn Nigeria into a pariah Nation; a laughing stock amongst the comity of Nations by taking retrogressive measures. As Victor Odozi has argued eloquently, the attempt being contemplated here bulks the trend. The provisions in the Act as is, in my opinion are adequate to manage any untoward situation except that there has been no diligence in trying to take advantage of such provisions. It is important to dispel the fallacy that what is currently being contemplated by this amendment is to align us with international best practices. This is not supported by a careful review of the literature. Instead the status quo remains current and unassailable.
What is even worrisome is that this attempt to review the Act is as it were being done surreptitiously. Such a landmark move should occupy prime space in the media. But that has not been the case to the best of my knowledge. The last time an attempt of this nature was made it was preceded with elaborate public hearing where expert views and opinions were canvassed to ensure that well informed decisions and conclusions are reached and adopted. Please let’s ensure that this important aspect that should complement such a review is not skipped as this review is progressed. This is in the best interest of all concerned as it ensures that we don’t go through all the trouble only to later embark on costly reversals.
As we attempt to strengthen our democracy, one of the requisite major hallmarks of strong democracy is the building of strong institutions. Strong institutions are on auto pilot driven with concern only to achieve their mandate while respecting only their guiding rules and regulations. They don’t respect any individuals’ whims and caprice no matter how powerful he is. We saw that recently in America, when Donald Trump attempted to subvert the electoral process to perpetuate himself in office. Most of the judges at the Supreme Court were his appointees but the law of the land ran its course. That should be our focus and goal as a Nation.
This review being contemplated by the Senate if approved will instead have the unintended effect of undermining the ability of the Central Bank to discharge its core mandate. If there are any issues with the operations of the Bank, it should instead be isolated and addressed rather than having recourse to an attempt to review the Act. Let us not make ourselves appear unserious and not knowing our way forward. We must not act as if we want to throw out the Baby with the bath water. Shalom.
*** Written by Boniface Chizea, MD/CEO, BIC Consultancy Services.
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