Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria (CBN), has advised the National Assembly to proceed cautiously when considering a review of the CBN Act 2007 (as amended).
In a message published on his social media platform, X, on Tuesday, Moghalu noted that, notwithstanding what the current legislation implicitly states, he supports the explicit prohibition of the CBN governor and deputy governors from participating in political politics.
“Two bills sponsored by Senators @nassnigeria to review the CBN Act 2007 (as amended) should be handled carefully,” stated the former deputy governor of the CBN. Although the current law already forbids the Governor and DepGovs of @cenbank from engaging in any “employment or vocation” outside of their central banking duties, I support explicitly prohibiting them from being involved in partisan politics. However, the idea to have an external director chair the Board of Directors instead of the CBN Governor, as is currently the case, is a BAAAD idea. Should this be adopted, the central bank’s statutory independence will be weakened.
The Governor chairing the Board of Directors is the finest global practice, for the valid reason of shielding the Bank from outside interference.This provision will allow the CBN to formally become a victim of the excessive partisan politicization of Nigerian institutions, which should be independent but are really just extensions of the political party in power.
“The previous Governor Godwin Emefiele committed excesses that the NASS and President Buhari not only tolerated but actively encouraged (e.g., the monetary authority’s N23 trillion Ways and Means lending to the fiscal authorities; and the previous Governor’s attempt to run for the Office of the President under the grave delusion that he could move directly from the CBN into Aso Rock without resigning his office), ostensibly for self-serving reasons. This anomaly does not justify undermining the institution’s autonomy and destroying it.
“Those who violate morality and the law ought to bear personal responsibility for their deeds. May the shameful devastation of the CBN’s professionalism by Emefiele, who sold it to politicians and cabals, and the ensuing negative impact on our economy, not recur in Nigerian history.
“The answer is for our political leaders to genuinely consider the good of the country when making such a delicate appointment, instead of only their own interests. Poisoning a sick patient with drugs will not accomplish this goal. A comparable attempt was made in 2012 when Lamido Sanusi was the governor and I was employed by the organization as DepGov. We stiffly resisted it. The group now led by @YemiCardoso need to.