Senate Tasks CBN On Statutory Reporting Compliance As Stakeholders Engage On Bank Recapitalization

Wale Jagun

Sen. Tokunbo Abiru, Chairman, Senate on Banking, Insurance and other Financial Institutions (3rd left) and other members of the Senate and House of Representative Committees during the interactive session with the CBN Governor and other officials

The Nigerian Senate has tasked the Central Bank of Nigeria, (CBN) and its subsidiaries such as the Nigerian Security Printing and Minting PLC, NIRSAL Plc, NIRSAL Microfinance Bank on strict compliance with the Central Bank of Nigeria Act 2007 and the Senate Standing Orders 2023 (as amended).

This was made known during the interactive session and statutory briefing of the Central Bank of Nigeria with the joint committees of the Senate on Banking, Insurance and other Financial Institutions and the House of Representatives Committee on Banking Regulations held on Thursday in Abuja.

In a statement on Friday, Mr Enitan Olukotun, the Special Adviser on Media & Publicity to the Chairman of the Senate Committee, Senator Mukhail Adetokunbo Abiru, FCA (Lagos East), said that the two term Senator who was a former bank executive pointed out during the session that the Central Bank of Nigeria Act 2007 made clear provisions for specific compliance obligations on the part of the CBN with respect to its reporting and briefing obligations to the National Assembly, and specifically to the Committee on Banking, Insurance and other Financial Institutions.

The Senator said:

“Section 8(4) (a) and 5(b) of the Central Bank of Nigeria Act 2007 requires that the CBN Governor shall amongst others:

“Appear before the Committee at semi – annual hearings to brief it on the one hand about its efforts, activities, objectives and plans of the Board with respect to monetary policy and on another hand, on economic developments and prospects for the future;

“From time to time, make formal reports and presentations on activities of the CBN and performance of the economy;

“The CBN is also required by other extant laws to appear before the Committee to defend its budget for the next financial and fiscal year.

glowfux advert 2023

“Also, Section 50 (1) and (2) of the CBN Act 2007 makes it mandatory for the CBN to submit to the National Assembly and this Committee its annual accounts certified by its auditor.

“In addition, Order 92 of the Senate Standing Orders, 2023 (as amended) also mandates Ministries, Boards, Commissions and other Agencies to present their statutory annual reports to the Senate before the consideration and approval of their estimates”, the Committee Chairman said.

Senator Abiru, also encouraged the apex bank to embark on more engagement with relevant stakeholders to secure their cooperation and understanding in the plan for recapitalization of banks.

The CBN Governor, Mr. Olawale Cardoso in his remarks explained how recent interventions on monetary policy have been impacting the economy positively.

He submitted that the global economy is confronted by myriad of challenges such as dampened global trade; high global debt; rising geo-political tension; disruptions to supply chains and commodity markets; cross-border capital inflows from emerging markets; Uncertainty and threats to financial system stability.

He, however, noted that policy strategies deployed by the apex bank and the audacious monetary and economic reforms of President Bola Ahmed Tinubu, GCFR, like the removal of fuel subsidy, convergence of foreign exchange and tax reforms, the capital market and foreign portfolio investments had improved.

The CBN Governor buttressed his assertion with the recent reports of Moody and Fitch and the World Bank on the positive economic outlook of Nigeria.

Shortage of cash in the system was also brought to the fore by the Senate stressing that at least 5% percent of money in the system should be in cash in accordance with what is obtained in advanced economies where cashless policy is practiced.

The meeting ended with both committees of the National Assembly and the CBN agreeing to work together for the good of the Nigerian economy and prosperity of its citizens.

Related posts

Leave a Comment