President Buhari Must Summon CBN Governor and Finance Minister to know why they’re not working together

Let us condemn the evidential lack of team spirit which made it possible that the Central Bank of Nigeria (CBN) can plan a huge policy playbook to redesign the Naira with no involvement from the Ministry of Finance. I have read how many citizens have supported the indefensible, stating that the  CBN does not have any obligation to discuss anything with the finance ministry.

Good People, I think that thesis is WRONG. Yes, irrespective of their portfolios, that the CBN can go ahead with its plan, even after getting an approval from the President, and not telling the nation’s finance minister,  is bad, and must be condemned. CBN can do what it wants but it has an obligation to inform other partner MDAS (ministries, departments and agencies) so that they are prepared and contribute to the success of the policy implementation and execution.

You cannot separate monetary policies and banking regulations from national financial policies and implementation. The main jobs of a central bank are to keep a country’s currency stable (keep inflation low) and boost employment (manage interest rates). It cannot do those things effectively in isolation without the finance ministry which handles the national budget.

Do not tell me that a central bank governor is appointed to win an economic battle without looking at the economic warfare. If the currency is messed up, the fiscal state of the nation becomes imperiled. Today, our balance of payment will struggle as the Naira bleeds against most global currencies as many people rush to turn their underground Nairas into USD, GBP, Euro, etc. Yes, the action of CBN has crept into the doors of the ministry of finance.

We need to be practical on national matters. Our CBN governor and finance minister must work together as a team to serve Nigeria. The President must send a memo to both and mandate them to work together on any major policy because the core difference between what the CBN does and what the finance ministry should celebrate, before Nigerians, is half a dozen and 6. Indeed, the president might not have known that the finance ministry was not aware of the redesigning naira plan as he approved for the CBN. Yes, I would not have expected him to go ahead if he was well updated that the finance ministry was not informed.

Mr. President, summon the CBN governor and the finance minister immediately, and charge them to work together. If that does not happen,   the implication is that nothing catalytic will come from this important part of the government.

LinkedIn Summary

In this piece, I write that President Buhari must summon the Central Bank of Nigeria (CBN) governor and the finance minister (Zainab Ahmed) to explain the circumstances which led to an unbelievable accusation that the apex bank planned to redesign the national currency with no input from the finance ministry.

You cannot separate monetary policies and banking regulations from national financial policies and implementation. The main jobs of a central bank are to keep a country’s currency stable (keep inflation low) and boost employment (manage interest rates). It cannot do those things effectively in isolation without the finance ministry which handles the national budget.

Do not tell me that a central bank governor is appointed to win an economic battle without looking at the economic warfare. If the currency is messed up, the fiscal state of the nation becomes imperiled, falling on the doors of the finance minister. In other words, there is no way these two leaders must not work together if we expect to have decent outcomes from our leaders.

Nigeria’s Central Bank Did Not Tell the Finance Ministry of Plan To Redesign Naira

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