23 May 2012

Nigeria: Don't Temper With CBN Autonomy - Deputy Governor

A Deputy Governor of Central Bank of Nigeria (CBN), Dr Sarah Alade, in Abuja on Wednesday cautioned the Senate against removing the autonomy of the apex bank.

Alade, who expressed the view while being screened by the Senate Committee on Banking, Insurance and other Financial institutions, said removal of CBN autonomy could collapse the economy.

"Once the autonomy of the CBN is tempered with, then it becomes incapacitated.

"It then becomes easy for government to wake up and ask the bank to print more money to meet certain expenditure and the economy will collapse," Alade, who was being screened for a second tenure, said.

She said that any attempt to tamper with the CBN autonomy would put the economy at risk.

She said there was nothing wrong with the 6.9 billion dollars external loan being sought by the Federal Government as long as the government would use it to create employment.

"We do not want the debt to be too much because of the capacity to service it," Alade said.

She said the failure of banks should not be blamed on consolidation because the exercise put the banks in a position to withstand financial crisis.

The News Agency of Nigeria (NAN) recalls that there is currently a bill before the National Assembly seeking to make CBN subject its budget to the scrutiny of the legislature.

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