CBN moves to ‘disengage’ MPC members appointed by Buhari, Emefiele

Ahead of its maiden Monetary Policy Committee (MPC) meeting since last year when its Governor and Deputy Governors were appointed, the Central Bank of Nigeria (CBN) has reportedly planned to replace the five external members of the 12-member MPC.

The move came amid ongoing reforms embarked upon by the CBN Governor, Mr. Olayemi Cardoso since assuming office last September.

A CBN source has also confirmed that the appointment of new independent MPC members was underway.

According to Bloomberg, four external members who spoke on condition of anonymity, lamented their alleged exclusion, adding that they had not been paid by the bank since August. The fifth member did not respond to requests for comment

The aggrieved members further alleged communication gap with the central bank, pointing out that they last heard from the apex bank in September and have been apparently excluded from the usual planning ahead of the February 26th and 27th MPC meeting.

The MPC consists of the governor, four deputies and two bank directors, plus five outsiders appointed by the president and the governor.

The current five external members were picked by former President Muhammadu Buhari, and former CBN Governor, Mr. Godwin Emefiele

The committee requires six of the 12 to be present to constitute a quorum.

So, if no external members of the committee are present, it would leave question marks over the policy process.

The current external members who spoke to Bloomberg said they’ve not been invited to the meeting and don’t anticipate being there.

An economist at BancTrust & Co., Omobola Adu, said, “Holding February’s MPC meeting without any independent member would likely raise questions concerning the credibility of the decision.

“Having external members reduces the bias that the central bank can be influenced by internal or political pressures.”

It was gathered that it was unlikely that the tenure of the affected MPC members had elapsed especially given that the new leadership of the apex bank had indicated its preference to inject new manpower since inception