EXCLUSIVE: Crisis looms as key CBN committee can’t form quorum

The all-important monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) will not be able to meet in January 2018 because of quorum issue, TheCable can report. 

On Tuesday, Suleiman Barau retired as CBN deputy governor (operations), making it legally impossible for the MPC to meet.

In all, there are currently only five members available — whereas the quorum is six out of 12 members, as defined by the second schedule of the CBN Act.

Another deputy governor, Adebayo Adelabu (corporate services), has served notice of disengagement ahead of the 2019 governorship election in Oyo state, sources informed TheCable.

WHAT DOES MPC DO?

• The monetary policy committee (MPC) is the highest policy making committee of the CBN mandated to (1) review economic and financial conditions in the economy (2) determine appropriate stance of policy in the short to medium term (3) review regularly, the CBN monetary policy framework and adopt changes when necessary and (4) communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy.

Sarah Alade, who was deputy governor for economic policy, had earlier retired in March 2017, but her replacement — Aishah Ahmad — is yet to be confirmed by the senate since her nomination in October 2017.

Five external members of the committee ended their tenures in November 2017 and their replacements are yet to be confirmed by the senate.

The MPC, which determines interest rates, is made up of 12 members: the CBN governor (chairman), the four deputy governors, two members of the CBN board of directors, three members appointed by the president and two members appointed by the governor.

In April, Buhari announced the appointment of Ummu Ahmed Jalingo, Justitia Odinakachukwu Nnabuko, Mike I. Obadan, Abdu Abubakar and Adeola Adetunji as non-executive directors of the CBN board.

In October, he nominated Adeola Festus Adenikinju, Aliyu Rafindadi Sanusi,  Robert Chikwendu Asogwa and Asheikh A. Maidugu as new members of the MPC but they are subject to senate confirmation.

But the senate refused to screen Buhari’s nominees in line with its July 4 resolution to suspend all executive confirmation requests until Ibrahim Magu is removed as the acting chairman of the Economic and Financial Crimes Commission (EFCC).

The senate had refused to confirm Magu because of allegations of corruption, but Buhari has kept him in an acting position for the past two years.

The senate is demanding that Magu be replaced before it would continue to confirm presidential nominations.