Lawmaker seeks to set up commission for uniting monetary, fiscal authorities

Jones Onyereri, chairman of the house of representative committee on banking and currency, says the legislature is pushing for an executive bill to set up Financial Services Commission for uniting fiscal and monetary authorities.

Speaking to TheCable on the sidelines of the IMF and World Bank meetings in Washington, Onyereri explained what the house is doing to unite monetary and fiscal policies in Nigeria.

“We are pushing for an executive bill to set up the financial service commission, where the fiscal and monetary authorities will converge,” Onyereri said.

“And if we keep waiting for them and they don’t do it, the next alternative will be to have a private member bill, because they must have a way of converging so that we can deal with real economic issues and move the economic forward.”

When asked if the bill will not sabotage the independence of the central bank, the lawmaker said: “No, it wouldn’t, it would only help them achieve their core mandate, because let’s face the reality, the ultimate goal is for the economic to grow, and I think that the internment of trying to create the independence of the central bank.”

“So if there is this corresponding effect from the fiscal authorities, they would also achieve their core mandate, while creating a balance.”

Speaking on the independence of the CBN, the lawmaker said he believes the bank is independent and has all the legal backing to be independent.

“I believe the CBN is independent; unless they don’t want to assert their independent, because we have given them everything, from legal backing to assert their independence.

“So if they don’t assert their independence, it must be their making.”

He said his presence at the meetings was to work with the global parliamentary body set up by the World Bank, and also seek vigorous growth for the Nigerian economy.

On the need for a loan from IMF, Onyereri said: “It is not so much about trying to get loans. Of course, we would push for foreign loans, because that will help our domestic economy, because when you borrow domestically, it has a way of affecting interest rate, but the truth of the matter is the use of the borrowed funds.”

“I mean, look at the revelations coming here and there; it’s embarrassing. You don’t just borrow for borrowing sake, what do you intend to achieve with this.”