Senate Urges Strict CBN Compliance, Stakeholder Engagement for Banking System Recapitalization

Senate Urges Strict CBN Compliance, Stakeholder Engagement for Banking System Recapitalization

Fawaz Adebisi

In a recent session led by Senator Mukhail Adetokunbo Abiru, FCA (Lagos East), the Nigerian Senate emphasizes the need for unwavering adherence to the Central Bank of Nigeria Act 2007 and the Senate Standing Orders 2023 (as amended) by the Central Bank of Nigeria (CBN) and its affiliated entities.

This call extends to organizations such as the Nigerian Security Printing and Minting PLC, NIRSAL Plc, and NIRSAL Microfinance Bank.

Key directives from the Central Bank of Nigeria Act 2007 were highlighted during the interactive session.

Senator Abiru, Chair of the committees on Banking, Insurance, and other Financial Institutions from both the Senate and the House of Representatives, specifically underscored the requirement for the CBN Governor to provide biannual briefings to the committee.

According to him, these briefings should cover monetary policy, economic developments, and future prospects.

Senator Abiru also stressed the importance of the CBN engaging with stakeholders to ensure their cooperation in the proposed recapitalization plan for banks.

This emphasis aligns with Section 50 (1) and (2) of the CBN Act 2007, which mandates the CBN to submit its annual accounts certified by its auditor to the National Assembly.

In response, CBN Governor, Mr. Olawale Cardoso highlighted the positive impact of recent monetary policy interventions on the economy.

He acknowledged global challenges, such as dampened global trade and geopolitical tension, while emphasizing the success of bold economic reforms, including the removal of the fuel subsidy and foreign exchange convergence.

Concerns about a cash shortage in the system were raised by the Senate, suggesting that at least 5% of the money in circulation should be in cash to align with global standards.

The meeting, therefore, concluded with a commitment from both the National Assembly committees and the CBN to collaborate for the betterment of the Nigerian economy and the prosperity of its citizens.


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