The Central Bank governor and his declaration of allegiance – Part 3

Furthermore, Central Bank of Nigeria is now the sole authority for the determination of the exchange of rate of the naira from to time, using any mechanism it deems appropriate. The formulation of the country’s monetary policy is the prerogative of the Central Bank of Nigeria and the policies may only be modified by the President of Nigeria in writing whenever he so decides”.

Details of Decree 24 of 1991 as promulgated by General Babangida state that “there shall be for the Bank a Board of Directors (hereinafter in this Decree referred to as “the Board”) which shall be responsible for the policy and general administration of the affairs and business of the Bank. (2) The Board shall consist of:- (a) a Governor who shall be the Chairman (b) four Deputy Governors; (c) The Permanent Secretary, Federal Ministry of Finance; and (d) five directors. (3) The Board constituted under subsection (2) of this section shall be responsible for:- (a) the consideration and approval of the annual budget of the Bank; (b) the approval of the audited and management accounts and the consideration of the management letter from the external auditors; (c) the formulation of the Monetary and Credit Policy for Nigeria; which the Bank shall buy and sell foreign currencies; (d) devising suitable mechanism to determine rates of exchange at which the Bank shall buy and sell foreign currencies; (e) the appointment of auditors in accordance with section 43 of this Decree, the provision of the necessary facilities and the rates of remuneration; (f) the establishment and closing of Zonal Offices, Branches and Currency Centres; (g) carrying out of such other activities as are necessary and expedient for the pur poses of achieving the objectives of the Bank. (4) It shall be the duty of the Board to approve the detailed responsibilities of each of the Deputy Governors on the recommendation of the Governor. (5) Without prejudice to subsection (4) of this section, the Board may, on the recommendation of the Governor, assign or re-assign the Deputy Governors, from time to time, as may be expedient for the performance of the Bank’s functions under or pursuant to this Decree. 7. (1) The Governor or in his absence, one of the Deputy Governors nominated by him, shall be in charge of the day-to-day management of the Bank and shall be answerable to the Board for his acts and decisions. (2) The provisions of subsection (1) of section 6 of this Decree shall apply in relation to the general policy pursued or intended to be pursued on any administrative matters including staff pensions, salaries, allowances and any other similar matters. 8. 9. (1) The Governor and Deputy Governors shall be persons of recognised financial experience and shall be appointed by the President by instrument under the public seal and on such terms and conditions as may be set out in their respective letters of appointment. (2) The Governor and Deputy Governors shall be appointed in the first instance for a team of five years and shall each be eligible for re-appointment for another term not exceeding 5 years.

Provided that, of the first four Deputy Governors to be so appointed, one shall in the first instance be appointed for three years and two shall in the first instance be appointed for four years. Amendment Decree No. 41 of 1999 Management of the Bank Amendment Decree No. 41 of 1999 Appointment of Governor and Deputy Governors. Amendment Decree No. 37 of 1998 Amendment Decree No. 41 of 1999 (3) Notwithstanding subsection (1) or (2) of this section, the President may extend the tenure of office of the Governor, any Deputy Governor or any other Director of the Bank whose term of office has expired until a successor to such Governor, Deputy Governor or Director is appointed. (4) The Governor shall – (a) from time to time, keep the Head of State, Commander-in-Chief of the Armed Forces informed of the affairs of the Bank: and (b) at the end of every period of six months make a formal report of the affairs of the Bank to the Provisional ruling Council. 10. The Governor and the Deputy Governors shall devote the whole of their time to the service of the Bank and while holding office shall not occupy any other office or employment whether remunerated or not: Provided that the Governor or any of the Deputy Governors may by virtue of his office be appointed with the approval of the Board to – (a) act as member of any commission established by the Federal Government to enquire into any matter affecting currency or banking in Nigeria; (b) become Governor, Director or member of the Board or by whatever name called, of any international bank or international monetary institution to which the Federal Government shall have interest or given support or approval; (c) become Director of any corporation in Nigeria in which the Bank may participate under paragraph (I) of subsection (1) of section 27 of this Decree. 11. (1)

The five Directors of the Bank shall be appointed by the President. (2) A Director appointed pursuant to this section shall be a person of recognised standing and experience in financial or banking affairs, but whilst a Director of the Bank, he shall not be regarded or act as a delegate on the board of any Federal, State or Local Government or of any commercial, financial, agricultural, industrial, or other interest with which he may have been connected before his appointment as a Director of the Bank. (3) A Director appointed pursuant to this section shall (a) hold office for three years and shall be eligible for re-appointment for another term of three years only; (b) be entitled to such fees and allowances as may be prescribed by rules made in that behalf by the Board and approved by the President. 12. (1) No person shall be appointed or shall remain Governor, Deputy Governor or Director of the Bank if he is – (a) a member of any Federal or State legislative house; (b) a Director, officer or employee of any bank licensed under the Banks and Other Financial Institutions Decree 1991.
To be continued tomorrow

Teniola, a former director at the Presidency wrote from Lagos.