The Nigerian Senate has tasked the Central Bank of Nigeria, (CBN) and its subsidiaries such as the Nigerian Security Printing and Minting PLC, NIRSAL Plc, NIRSAL Microfinance Bank on strict compliance with the Central Bank of Nigeria Act 2007, and the Senate Standing Orders 2023 (as amended).
This was made known during the interactive session and statutory briefing of the Central Bank of Nigeria with the joint committees of the Senate on Banking, Insurance, and Other Financial Institutions and the House of Representatives Committee on Banking Regulations held on Thursday in Abuja.
The Chairman of the Committee, Senator Mukhail Adetokunbo Abiru, FCA (Lagos East), in his remarks, pointed out that the Central Bank of Nigeria Act 2007 made clear provisions for specific compliance obligations on the part of the CBN with respect to its reporting and briefing obligations to the National Assembly, and specifically to the Committee on Banking, Insurance, and other Financial Institutions.
He added that “Section 8(4) (a) and 5(b) of the Central Bank of Nigeria Act 2007 requires that the CBN Governor shall amongst others :
“Appear before the Committee at semi-annual hearings to brief it on the one hand about its efforts, activities, objectives, and plans of the Board concerning monetary policy and on the other hand, on economic developments and prospects for the future;
“From time to time, make formal reports and presentations on activities of the CBN and performance of the economy;
“The CBN is also required by other extant laws to appear before the Committee to defend its budget for the next financial and fiscal year.
“Also, Section 50 (1) and (2) of the CBN Act 2007 makes it mandatory for the CBN to submit to the National Assembly and this Committee its annual accounts certified by its auditor.
“In addition, Order 92 of the Senate Standing Orders, 2023 (as amended) also mandates Ministries, Boards, Commissions, and other Agencies to present their statutory annual reports to the Senate before the consideration and approval of their estimates”.
Senator Abiru, also encouraged the apex bank to engage more with relevant stakeholders to secure their cooperation and understanding in the plan for recapitalization of banks.
In his remarks, the CBN Governor, Mr. Olawale Cardoso explained how recent monetary policy interventions have been impacting the economy positively. He submitted that the global economy is confronted by myriad challenges such as dampened global trade; high global debt; rising geo-political tension; disruptions to supply chains and commodity markets; cross-border capital inflows from emerging markets; Uncertainty and threats to financial system stability.
He however noted that policy strategies deployed by the apex bank and the audacious monetary and economic reforms of President Bola Ahmed Tinubu, GCFR, like the removal of fuel subsidy, convergence of foreign exchange and tax reforms, the capital market, and foreign portfolio investments had improved. This was buttressed by the recent reports of Moody and Fitch and the World Bank on the positive economic outlook of Nigeria.
Shortage of cash in the system was also brought to the fore by the Senate stressing that at least 5% percent of the money in the system should be in cash in accordance with what is obtained in advanced economies where cashless policy is practised.
The meeting ended with both committees of the National Assembly and the CBN agreeing to work together for the good of the Nigerian economy and the prosperity of its citizens.
