Nigeria’s Central Bank Plan Overhaul of Monetary Policy Committee Amidst Salary Owning Reports


Nigeria’s central bank is gearing up for a significant transformation as it plans to replace the external members of its monetary policy committee (MPC).

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This move comes amid claims from four out of the five external members that they have been sidelined in the lead-up to the next MPC meeting scheduled for February.

The external members revealed that they have not received payment since August, last heard from the central bank in September, and have been excluded from the usual planning for the gathering.

A spokesperson for the central bank acknowledged the forthcoming appointment of new independent MPC members but provided no further details on the restructuring.

This development unfolds as part of an ongoing shakeup of the institution, critical to President Bola Tinubu’s efforts to stimulate growth and attract foreign investment to Nigeria’s economy.

President Tinubu had previously suspended the then-governor, Godwin Emefiele, soon after taking office in May. Emefiele faced charges, including fraud, and his trial is still ongoing.

In his stead, Olayemi Cardoso, an ex-Citibank executive, assumed leadership and pledged a return to orthodox central banking, focusing on combating inflation and stabilizing the country’s depreciating naira currency.

Cardoso expressed commitment to rebuilding an institution that is trusted and respected, aiming to instill confidence in the economy. The MPC, consisting of the governor, four deputies, two bank directors, and five outsiders appointed by the president and the governor, requires a quorum of six members out of twelve for its proceedings.

Despite the ongoing reshuffling, the upcoming February meeting is expected to have a proper quorum. However, the current external members, who spoke with Bloomberg, expressed concerns about not being invited to the meeting and do not anticipate participating.

Economists anticipate Cardoso to raise interest rates sharply during the February meeting, the first since July when the policy benchmark was increased to 18.75%. Inflation has surged since then, reaching a three-decade high of 28.9% in December. However, the potential absence of external committee members in the decision-making process raises questions about the credibility of the upcoming decisions, underlining the importance of external perspectives in mitigating potential biases influenced by internal or political pressures.

Editorial Staff
Editorial Staff
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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