Leadership (Abuja)
28 April 2008
The Association of Corporate Affairs Managers of Banks (ACAMB), has advised the Federal Government to exercise caution in the ongoing probe of the Central Bank of Nigeri's (CBN's) $480 million equity investment in the African Finance Corporation (AFC)
in order not to be seen by the international community as a cog in the wheel of the Corporation's progress.
In a statement, the Association described the decision taken by the CBN in 2007 as a move that would impact positively on the nation's economy and that of Africa.
It said that the CBN, which was the brain behind the establishment of the AFC in 2007, should be commended for its pro-activeness in this regard, as the nation stands to benefit tremendously from its investment in the Corporation. This, it noted, is hinged on the fact that the AFC is well-positioned to provide funds to accelerate the economic well-being of the continent and its people.
Already, the AFC has commenced plans to build a $700 million Ring Road in Port Harcourt . The Corporation and the government of Guinea Bissau have also agreed to a multi-million dollar upgrade of the electricity and water facility of the country, among other initiatives in some African countries, aimed at bolstering infrastructural development and eradicating poverty.
The Association emphasised the need for all hands to be on deck to ensure that the AFC achieves its objectives against the backdrop of the sordid experience of African countries in the hands of global institutions like the International Monetary Fund and World Bank, when it comes to sourcing of funds.
On the ongoing probe of the CBN's investment in the AFC by the Federal Government, ACAMB observed that this is a dis-service to the nation as there has not been any report or allegation of impropriety in the operations of the Corporation. "While we commend the Federal Government for its efforts at ensuring probity and transparency in the country, we believe that this particular probe of the CBN for taking a bold decision that would add value to Nigeria is uncalled for, a distraction and capable of undermining the reputation and strides made so far by the AFC," the Association stated.
ACAMB pointed out that available facts show that due process was followed by the CBN going by the apex bank's Act of 2007, which makes it an autonomous body and empowers the board to invest its (CBN) money in a manner that will bring good returns. Based on this provision, there is no need for the CBN to seek approval from the National Assembly.
The Association is urging the Federal Government to rather focus on how best to strengthen the AFC in order to realise its objectives so that the country would derive maximum returns from its investment in it.
Be the first to Write a Comment!
Copyright © 2008 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
