Former Governor of the Central Bank of Nigeria (CBN) Dr Paul Ogwuma has warned against plans by the National Assembly to whittle down the powers of the CBN through the amendment of the CBN Act 2007.
This is even as current CBN Governor, Sanusi Lamido Sanusi warns of an impending curse on the current generation of politicians from posterity if the existing level of borrowing from big nations should continue, alerting that if such spells were cast, no amount of prayer would wash it off.
He urged the federal government of Nigeria not to allow the present and unborn generations inherit the heavy burden of foreign debts cautioning that Nigeria, currently under the suppressing weight of the heavy burden of foreign debts is in great danger.
Ogwuma, who emphasised the need for an independent CBN, maintained that measures to circumscribe the autonomy of the CBN have been driven by stakeholders who desire to influence the outcome of monetary, credit and exchange rate policies of the bank to their advantage.
According to him, “A relatively weak Central Bank will not have the power to say ‘NO’ to politicians when the bank is called upon to print the money they need to finance government deficits. Neither can a weak Central Bank be able to sanction a badly run commercial bank that has powerful political shareholders on its board.”
He maintained that all the Franco-phone and virtually all the Anglo-phone countries in the West African sub-region have granted their Central Banks independence. Indeed granting Central Bank independence has become a global norm because of the inherent benefits it accrues to the economy, adding that Nigeria cannot be an exception.
Ogwuma while urging members of the House of Representatives not to whittle down the independence of the CBN as contained in the CBN Act, 2007, also impressed on the management of the CBN the need to increase the frequency of its consultations with relevant committees of the House of Representatives and the Senate, so as to avoid the pronouncement of major policy ‘Surprises’.
“The Management of the CBN should see the legislators as partners in progress for the common good of the Nigerian Economy,” he said
Meanwhile, Sanusi who spoke during an exclusive interview to emn-news.com correspondent, Dare Lasisi during the just concluded conference of Honourary International Investments Council (HIIC), warned of a great danger ahead if the nation continued to live above his realistic means.
His words: “We are borrowing more money today at a higher interest rate while leaving the heavy debt burden for our children and grandchildren. For example, if you receive your salary and everyday the money is not enough, you have two options to adjust yourself; Either check your expenditure or check your wages.
He declared that a ruling government must set a good example to coming generations and should endeavor to educate the coming generation for a better disciplined future. He said this example should be set through the ruling government not accumulating debt for the future generation to inherit.
“My daughter is studying at Brighton University and another one at the New York University. I can afford the school fees as long as I am working and still alive and by the time I retire from service, I would have set aside enough funds to educate my other children.
He questioned: “But how many Nigerians can afford to educate their children in both Europe and America?
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“In ten to fifteen years time from now, if Nigeria is still bad and my children cannot secure good jobs in Nigeria, they can as well stay abroad to look for suitable alternative employments.”
He queried: “Even then, where would the future be for Nigeria if today will destroy the future”
Sanusi was among the high-profile Nigerian delegation that attended the 13th session of the Honorary International Investments Council (HIIC) of the Council,which was held on 29-30 November 2011 at Beckley Hotel in Knightsbridge,Central London.
The Honorary International Investments Council (HIIC) is a cross-country organization of prominent investors, drawn from various countries around the world with the task of advising and encouraging governments on economic development issues as concerned nations, especially the fast growing economies in the World.
The business conference sessions held in London on Thursday and Friday past had Vice President Namadi Sambo leading a strong team of economic planners and canvassers teaming up with business executives to carouse for international investors for the country.
The two-day conference had looked into the best ways of attracting investment to Nigeria and all speakers had the conscensus that the nation with many opportunities and natural benefits stand to grow fast economically if the current trend of economic progress persists
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