Nigerian lawmakers seek to strip Central Bank of crucial powers

Nigerian lawmakers want to strip the central bank of the final decision in setting interest rates, instead proposing a new team to be headed by the minister of finance.

A trio of legislative proposals are making their way through the Senate but must be debated before they can advance to the desk of President Bola Tinubu for his assent or veto.

The International Monetary Fund has warned that changing the law could undermine central bank independence, a sentiment echoed by the nation’s financial industry.

Nigeria is fighting the highest rate of inflation in 28 years and part of the problem stems from past central bank practices of funding the government by printing money – something current Governor Olayemi Cardoso says won’t happen on his watch.

Tinubu appointed Cardoso in September after replacing the previous head of the central bank, who was subsequently arrested on charges including fraud, which he denies.

The drafts include proposals to add the head of the revenue agency and auditor general to the bank’s board, and set up a coordinating committee for monetary and fiscal policies to be headed by the finance minister.