Business analyst Chika Mbonu has underscored the crucial role of the Central Bank of Nigeria’s (CBN) independence in maintaining a healthy economy.
In an interview with ARISE NEWS on Thursday, Mbonu elaborated on the difference between fiscal policy, directed by the government, and monetary policy, overseen by an independent central bank.
“Every economy is driven by two key policies: fiscal policy, set by the government in power, and monetary policy, anchored by an independent central bank,” Mbonu explained.
He added, “This central bank manages the money supply, which directly impacts inflation, interest rates, and exchange rates.”
Mbonu emphasized the importance of an independent central bank in effectively implementing these policies to foster economic growth.
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“The Central Bank of Nigeria must be free from political influence to function properly.”
His comments come amid discussions about a proposed amendment to the CBN Act by Nigerian lawmakers.
Mbonu expressed his disapproval of the amendment, arguing that it could undermine the Central Bank’s autonomy.
He raised concerns that political interference could hinder the Central Bank of Nigeria’s ability to manage the economy effectively.
“For the betterment of the country, the law seeking to amend the CBN Act should be abolished,” Mbonu concluded.
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