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    Use our pull-down menus to find more stories OR subscribers use AllAfrica's Nigeria: Group Petitions Nass Over 2007 CBN Act This Page This Page on this article The Publisher's Site (Lagos) 6 October 2008 Posted to the web 7 October 2008 Rotimi Durojaiye Lagos Controversy continues to dog the 2007 Central Bank of Nigeria (CBN) Act that was hurriedly passed into law by the National Assembly (2003-2007) and assented by former President Olusegun Obasanjo. The legislation has been described as monstrous and in conflict with the 1999 Constitution and the rule of law. In a letter to the National Assembly, a group known as Nigeria Progressive Movement (NPM), identified flaws in the CBN Act and called for its amendment. Signed by Segun Abayomi and Pat Ibe, President and Secretary of the group respectively, the letter claimed that some portions of the Act seek to elevate certain categories of CBN functionaries above the laws of Nigeria. Citing Section 1 (3) of the CBN Act, the NPM argued that it empowered the CBN Governor to usurp the executive powers vested on the President of Nigeria under Section 5 of the 1999 Constitution. "The seeming unlimited independence of the CBN under Section 1 (3) of the Act places the CBN Governor and the Board on collision course with the President of the Federal Republic, which had happened on at least two occasions in the recent past. That section should therefore be amended," the NPM said, ostensibly referring to the Naira redenomination saga in 2007 between the CBN and the Presidency. The new CBN Act provides under Section 1 (3) that, "In order to facilitate the achievement of its mandate under this Act and the Banks and Other Financial Institutions Act, and in line with the objective of promoting stability and continuity in economic management, the Bank shall be an independent body in the discharge of its functions." The group also frowned at Section 52 of the CBN Act, which it says offends Section 6 of the 1999 Constitution "because it seeks to oust the jurisdiction and powers of the courts." Section 6 of the Constitution provides, among other things, that, "The judicial powers of the Federation shall be vested in the courts to which this Section relates, being courts established for the Federation." However, Section 52 of the 2007 CBN Act states that: "Neither the Federal Government nor the Bank nor any officer of that Government or Bank shall be subjected to any action, claim or demand by or liability to any person in respect of anything done or omitted to be done in good faith in pursuance or in execution of, or in connection with the execution or intended execution of any power conferred upon that Government, the Bank or such officer, by this Act." "Clearly, Section 52 of the CBN Act is in conflict and/or inconsistent with Section 6 (1), (6) and (b) of the Nigerian Constitution 1999, dealing with the jurisdictional powers and authority of the courts, and should be expunged immediately," the group said. The NPM also described Section 8 (1) of the CBN Act as a ploy to defraud the nation by illegally paying pension to non-career officers. The group said that since the President appointed the CBN Governor and his Deputies, they are non-pensionable political appointees. "They have now smuggled in Section 8 (3) of the new CBN Act in order to illegally provide pension for themselves. It is fraudulent to make CBN Governors career staff, which they are not. That would be legalising fraud and corruption. Pension, as an item, should be deleted from that Section 8 (3). This is clearly because it is in conflict with Section 318 of the Nigerian Constitution and distorts the definition of public service of the Federation. The Governor and his Deputies are not career staff of the CBN and therefore, that section of the Act should also be amended by excluding pension to non-career officers of the Bank," the group stated. It also called on the National Assembly to expunge Section 11 (2) (f) of the Act. The section makes the removal of the CBN Governor by the President difficult. Relevant Links This is because the President can only get the CBN Governor removed "provided the removal shall be supported by 2/3 majority of the Senate that he be so removed". AllAfrica aggregates and indexes content from over , plus more than , who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are . Share this on: © 2008 Daily Independent. All rights reserved. Distributed by AllAfrica Global Media ( ). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, . | | | | | | Questions or Comments? . Read our . Today's Most Active Stories Most Read Most Commented Most Emailed