PDP Says CBN Is Operating Beyond Its Constitutional Power

PDP Says CBN Is Operating Beyond Its Constitutional Power

  • Governors of the Peoples Democratic Party have warned the Central Bank of Nigeria to stop acting like a government or beyond its constitutional power
  • The opposition party said the financial regulator now produces money whenever it wants or spend as much as it needs without supervision
  • The governors said CBN is going out of control, as it now threatens state heads with sanction for questioning the apex bank's affair

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Central Bank of Nigeria has been criticised by the Governors of Peoples Democratic Party for operating as an independent government by printing money without supervision.

The governor met on Monday during their forum, stating that the apex bank now act out of control, and doesn't respect state governments as well as.

They said instead of the financial regulator to operate in line with its modus of being the lender of last resort, it is involved in every government activity, spending money as the agency pleases.

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Governor of Central Bank of Nigeria, Godwin Emefiele, has come under criticism from PDP governors
Godwin Emefiele, the governor of the Central Bank of Nigeria. Photo: AFP PHOTO/STRINGER
Source: Getty Images
"It viewed with regrets that the CBN is operating as an independent government within a Government, which is a pervasion of the autonomy of the Bank."

The governors in a joint statement described CBN as a father Christmas:

"A situation where CBN creates money, decides how much of it to spend, on what to spend it on without any form of controls or supervision is patently subversive of our constitutional order."

They also spoke about the financial institution threatening governors for questioning the operation of CBN:

"CBN has become such an octopus that it threatens State governments publicly, without decorum, about sanctions on any attempt to question its MODUS OPERANDI."

They called on the monetary authority to take immediate steps to halt the depreciation of the Naira.

Meanwhile, Legit.ng had previously reported that investors in the cryptocurrency market in Nigeria are divided on the impact of the government-backed electronic currency which expected to take off by end of this year.

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New survey shows Nigerians don't want CBN's digital currency

The Central Bank of Nigeria said it plans to release it's own digital coin for the Nigerian public interested in the electronic currency market.

The digital currency is meant to replace the restricted cryptocurrency trading within Nigeria before the end of 2021.

Source: Legit.ng

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