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Obasanjo can’t stop CBN reform -Senate
NDIDI OKAFOR, Abuja
SENATE said
weekend that there is no going back on its bid to amend the Central Bank of
Nigeria (CBN) law and disclosed its intention to veto a possible refusal by
President Olusegun Obasanjo to assent to the amended document.
Senate spokesman Tamar Wada, who disclosed
this, dismissed as untrue, insinuations that the proposed amendment was targeted
at weakening the powers of the apex bank. He also spoke of the preparedness of
the Senate to "ban from debate, any Senator or group of Senators identified to
have interests in banks".
Last Thursday, Senate in a proposed
amendment to the CBN Decree 1999, raised the apex bank’s capital base from N300
million to N60 billion and sought to give itself powers to confirm members of
the CBN Board.
Senate also proceeded to propose an
amendment to the banks and other financial institutions decree (BOFID) No.40 of
1999 in which the chamber categorised banks into three in relation to meeting
CBN’s requirement of N25 billion capital base for all banks. Senate categorised
the banks in such a way that while some are able to meet the requirement, others
can recapitalise to N10 billion or N5 billion and continue to operate.
Wada said the Senate would not allow
"Senators with pecuniary interests" to participate in the debate of amending the
CBN and BOFID Act.
Already, the two bills seeking the
amendment of the laws have gone through first reading in the Senate.
The bills are "A bill for an Act to amend
the Banks and Other Financial Institutions Decree (BOFID) No. 40 of 1999" and
"Central Bank of Nigeria Act (amendment) bill 2004."
The CBN Amendment bill was sponsored by
Senators Sunday Ambuno Zik, Farouk Bello and Isaiah Ballat.
The BOFID Amendment Bill categorises banks
in Section 9(1) to mega, medium and small banks with a view to saving banks from
the pangs of the N25 billion new capital base fixed by CBN.
The relevant section states that banks
shall be categorised according to paid-up share capital, Mega banks with minimum
paid-up share capital of N25 billion, medium banks with minimum paid-up share
capital of N10 billion and small banks with minimum paid-up share capital of N5
billion".
Speaking of the determination of the
Senate to enact the new laws despite the misgivings in some quarters, Senator
Wada hinted that the National Assembly may override the President if he fails to
assent to the new bills when passed.
He reiterated the fact that the
legislature has the "power to turn its will into a command through its
legislative powers".
Wada noted that there was no going back in
the bid of the Senate to amend the laws.
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