A former CBN Deputy Governor on Operations, Adebayo Adelabu has said that most of the Central Bank’s “controversial” policies were opposed by a minority in the five-member Committee of Governors.
Adelabu gave the insight into the decision-m CBN making process during his ministerial screening at the Senate on Tuesday,
He said minority opinions are always documented in the minutes of every meeting of the Committee of Governors (CoG), the Monetary Policy Committee (MPC), and the Board of Directors.
“Most of these controversial decisions coming out of the CBN were actually taken by either three out of five or four out of five,” Adelabu said.
“There’s always a minority opinion. So far (as) the three have the governor by their side, they have their way; the minority will have their say. They may even have superior arguments.”
The ministerial nominee explained that the CoG is made up of “five governors”, that is, the CBN governor and four deputy governors.
“We must ensure that the appointment of the four deputy governors must be independent of the central bank governor, so that they are not subservient to the governor himself,” he added.
The ministerial nominee’s disclosure comes months after a string of heavily criticised decisions by the CBN, most notably the naira redesign policy at the peak of the hotly contested 2023 general election campaigns.
One of its critics was then Minister of Finance Zainab Ahmed, who complained about the CBN’s refusal to consult her ministry before moving to redesign the N200, N500, and N1,000 banknotes and discontinue the old bills within an unprecedented three-month window.
Such decisions are believed to have contributed to the travails of policy spearhead and now-suspended CBN Governor, Godwin Emefiele, who is facing a two-count charge of illegal possession of firearms and ammunition at a Federal High Court in Lagos State.
When asked to address a perceived contest between the Federal Government and the apex bank, the ex-CBN deputy governor rebutted the notion of such a relationship.
“The CBN can never be in competition with the Federal Government because the Central Bank of Nigeria is an economic arm of the Federal Government which oversees the monetary policy functions of the Federal Government,” Adelabu argued.
The ministerial nominee added that the second arm overseeing the fiscal policy arm includes the ministries of Finance, Budget, and Planning, and the Attorney General of the Federation (AGF).
