We Need More Than enough Evidence
Need More Than enough Evidence.THE most strident argument Central Bank of Nigeria makes for its autonomy – best international practices – is also one of the weakest points, if it is to convince Nigerians it has a right to supervise itself.
How did “best international practices” serve Europe and America whose economies are in a mesh? Were their central banks not independent when banks and other financial institutions put their economies in a spin?
Central banks in Greece, Spain, Italy, Portugal and the United States of America enjoy autonomy. Is there anything in the state of their economy to recommend their “best international practices” to Nigeria?
Agreed we cannot operate outside the international financial system, but our aspirations should be to make the best of our membership of the international community for the benefits of our people.
Every economy has its peculiarity, possibly caused by the ways of its people. The major function of CBN is to create stability in the economy. It is a business it should approach with transparent perspicacity that leaves no doubt that it wants to serve the interest of Nigerians. If it happens, Nigerians would be falling over themselves to award it More room to foster the growth of the economy.
Concerns of the National Assembly over CBN may be doused in the Nigerian’s growing loss of faith in anything from the National Assembly, but they are genuine. It could be dangerous to dismiss them.
In what ways would an independent CBN serve Nigerians better? How would an autonomous CBN regulate its processes to avoid internal abuses that could provide worse shocks Than the worst political interferences? Has CBN found answers to its auditors who award banks high marks in approving their accounts and within months the banks are bankrupt?
Fears abound about unbridled freedom for any institution, particularly of a kind that would come with minimal accountability. CBN, in addition to seeking independence, must grow its internal capacity to manage its affairs on which the economy rests.
Arguments at the National Assembly reflect different interests. Everyone has a reason for curbing another’s freedom. The More freedom CBN has, the less room for another institution to operate. CBN must appreciate the dynamics of positions and provide evidences it would manage its autonomy to the benefit of the economy.
If economies in More organised spheres collapsed right under the attentive watch of their central banks, then the stand that autonomy is the panacea for economic growth and stability would deserve More scrutiny. CBN needs to articulate its aspirations in a better way. We may understand the benefits of autonomy for central banks, but how would it work in Nigeria? CBN needs to tell us.
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