Kakalistiq.com reports that the Nigerian Senate has directed the Central Bank of Nigeria (CBN) and its affiliated institutions, including the Nigerian Security Printing and Minting PLC, NIRSAL Plc, and NIRSAL Microfinance Bank, to adhere strictly to the Central Bank of Nigeria Act 2007 and the Senate Standing Orders 2023 (as amended).
This directive was issued during an interactive session and statutory briefing between the CBN and the joint committees of the Senate on Banking, Insurance, and other Financial Institutions and the House of Representatives Committee on Banking Regulations in Abuja.
Senator Mukhail Adetokunbo Abiru, FCA (Lagos East), the Chairman of the Committee, emphasized the importance of compliance with the Central Bank of Nigeria Act 2007. He highlighted specific provisions, including Section 8(4)(a) and 5(b), which mandate the CBN Governor to appear before the Committee for semi-annual hearings, make formal reports on CBN activities and the economy, and defend the budget for the next financial year.
Senator Abiru encouraged the CBN to engage with relevant stakeholders for their cooperation and understanding in the plan for the recapitalization of banks. Additionally, he underlined the Senate Standing Orders, 2023 (as amended), which mandate statutory annual reports from Ministries, Boards, Commissions, and other Agencies.
The CBN Governor, Mr. Olawale Cardoso, discussed the positive impact of recent interventions in monetary policy on the economy. He acknowledged global challenges but highlighted successful reforms such as the removal of the fuel subsidy, convergence of foreign exchange, tax reforms, and positive economic outlook reports from Moody, Fitch, and the World Bank.
The Senate raised concerns about cash shortages in the system and advocated for at least 5% of the money to be in cash, aligning with the cashless policy practiced in advanced economies. The meeting concluded with mutual commitment from both committees and the CBN to collaborate for the benefit of the Nigerian economy and its citizens