Bala Na’Allah, deputy leader of the senate, says the Central Bank of Nigeria (CBN) has lost its grip on the country’s banking industry.
He said the sector has become a cartel which has the capacity to manipulate the country’s fiscal and monetary policies.
Na’Allah said this on Tuesday while contributing to the debate on a motion entitled ‘Dire need for a stakeholders’ roundtable to address increasing interest rates in Nigeria’.
The motion was sponsored by Rafiu Ibrahim, senator representing Kwara south.
The deputy senate leader said the banking sector did not appear like it was sensitive to the country’s development.
“The best approach to this is to be honest and sincere to ourselves; to look at the banking sector in Nigeria and see whether it can truly be called a banking sector that is sensitive to the development of this country,” Na’Allah said.
“First, we must admit the fact that we have one of the most unpredictable economies in the world and the reason being that the CBN has lost its grip (on the sector). In one day it is the regulator and participant in the banking industry and in another day it even goes outside its mandate.
“What explains this is simple: our investors in the banking sector have constituted themselves into a cartel and, therefore, they possess the capacity to manipulate the fiscal and monetary policies, and ensure that at no time will the two come together for the purpose of stabilising the economy. When it stabilises, they become the losers.”
Abdullahi Yahaya, senator representing Kebbi north, said the upper legislative should use its position to get the fiscal and monetary authorities to do the right thing.
“These policies we are using, we have used them for the past 20 years and they have failed. You cannot fight inflation and spur growth and development at the same time,” he said.
The senate adopted the motion after it was put to a voice vote by Bukola Saraki, senate president.
The senate further mandated its committee on banking, insurance and other financial institutions to organise a roundtable with the Central Bank of Nigeria (CBN), deposit money banks, Nigerian Deposit Insurance Corporation (NDIC) as well as other relevant stakeholders and industry experts.
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