Monday 26th June, 2017
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Finance Minister: You are hurting the economy (part 11)

Finance Minister: You are hurting the economy (part 11)

In December 2016 I wrote about the Finance Minis­ter’s public statements that are inimical to the health of the economy and some few individuals felt I was too hard on the woman. Then she had without facts named 33 agen­cies of government based on an audit exercise conducted by one of the parastatals un­der her Ministry, Office of the Accountant General of the Federation of non-remittance or under-remittance of their operating surpluses to the tune of N450billion gener­ated over a period of 2010 and 2015. Among those agencies found culpable were CBN, CAC, NTA, JAMB and oth­ers. But few hours after her public press conference, her colleague ministers quickly denied her claim. She was thoroughly embarrassed.

Few weeks after this public show of shame, our madam on the eve of one of the MPC meetings of the CBN took to the gallery again, ordering the MPC Committee members to lower the interest rate in or­der to stimulate the economy, which she had announced to the public was ‘technically in recession’. With the attendant public outcry over her naïve estimation of monetary policy issues, she came out later to say her comment was her own personal opinion as she lacks the capacity to dictate to the Committee members.

I thought the madam had learnt her lessons. But few days past, when receiving House of Representatives Tactical Committee mem­bers on Recession allegedly blamed the ‘excessive powers of the CBN governor for the disconnection between the monetary and fiscal policies. She therefore pleaded with the National Assembly to consider a legislation to whittle down the powers of the apex bank governor and institute a check and balancing mechanism in the legislation. According to the report, she was puffed that the CBN had the effrontery to decide and act on issues of ‘finance’ without recourse to her, the constitutionally au­thorized person saddled with such responsibility. To her, the audacious action of the CBN governor attest to the exces­sive powers massed by the CBN governor that must at all cost be curtailed.

Allegedly grieved, she blamed the National Assem­bly for yielding to Professor Charles Soludo, a former gov­ernor of the Bank’s request for more powers in 2007. In her view, to have allowed such ap­proval as enshrined in CBN Act 2007 is what we are expe­riencing its consequences to­day and she was on her knees begging them (legislators) to revisit that Act and cut down the CBN Governor’s powers, and probably make the Bank a parastatal in her Ministry.

I dare ask madam Adeosun to come out openly about her agenda. What is her pedigree in monetary/financial issues until she was propped up in the Ogun State as its Com­missioner for Finance, and because of political power play and favour showed up at the national turf as a pow­erful minister in charge of finance? Haaba madam! Dr. Ngozi Okonjo-Iweala, Senator Nenadi Usman and Dr. Segun Aganga (all former Finance Ministers) worked harmoni­ously with the same Act you are grieving over. I do not want to share in the sentiment milling around that you are a member of the fifth columnist bent on easing the CBN Governor out of the his exalted position. You want CBN submerge under you ministry, and for what? Madam Adeosun, if you need more powers to do your job, you are at liberty to approach the National Assembly, and stop campaigning for what you lack capacity to use.

It is a fact that, if what you are campaigning for is granted and politicians like you are al­lowed to control the CBN, the economy will be in serious trouble. And with your obvious lack of depth in issues of fiscal matters, not to talk of mon­etary matters, burying CBN in your ministry would not only endanger the apex bank’s in­dependence, but doom for the nation. If I may ask, what can the Finance Minister point to as her achievement to reflate the economy since it moved into recession? The problem is not the autonomy of the CBN, but inability of the elements within the fiscal authorities to forge seamless coordina­tion with monetary authority. What impression are you cre­ating to the investing world about Nigeria, particularly at this troubled period of the economy, or is the Minister cowed by the achievements of the CBN under the watch of Godwin Emefiele?

We have not seen the re­quired synergy between her and her National Planning counterpart. Everyone is ad­vocating a harmonious synergy between the fiscal and mone­tary authorities, but the Minis­ter is threading a more sinister path that will lead the nation nowhere. One is not therefore surprised that there have been clamours for her sack from the ministry.

So far, the CBN has helped the government in its econom­ic diversification agenda, even intervened in critical sectors in the economy. It is unfortunate that at this time of dire national economic challenge when all agencies ought to have a com­mon front and device a strategy to enable us come out of the present recession, it is rather worrisome that key elements at the temple of economic management choses to evince centrifugal tendencies just for selfish aggrandizement.

This campaign, once again, the Honourable Minister, is an unnecessary distraction that the economy does not need now.

•Obafemi Aluko contributed this from Ago Iwoye, Ogun State.

 

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