Senate Urges CBN And Affiliates To Adhere To Regulatory Compliance

The Nigerian Senate has emphasized the need for the Central Bank of Nigeria (CBN) and its subsidiaries to strictly follow the CBN Act 2007 and Senate orders.

During a joint committee session in Abuja, the focus was on the CBN’s adherence to its legislative reporting and briefing duties.

Senator Mukhail Adetokunbo Abiru underscores the importance of the CBN’s compliance with its obligations under the Central Bank of Nigeria Act 2007.

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 with respect to 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 embark on more engagement with relevant stakeholders to secure their cooperation and understanding in the plan for the recapitalization of banks.

The CBN Governor, Olawale Cardoso in his remarks explained how recent interventions on monetary policy 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% per cent 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.