The Central Bank of Nigeria (CBN) is set to replace the five external members of the 12-member Monetary Policy Committee (MPC) in line with the new management’s decision. The current external members were appointed by former President Muhammadu Buhari and former CBN Governor Godwin Emefiele.
The move is part of the CBN’s plan to inject new manpower and align the MPC with the new leadership. The MPC consists of the CBN governor, four deputy governors, two bank directors, and five external members appointed by the president. The new leadership aims to appoint fresh external members to the MPC.
The decision has raised questions about the credibility of the upcoming MPC meeting scheduled for February 26 and 27, as the appointment of new independent members is underway. External members are considered crucial for reducing bias and ensuring the central bank’s decisions are not influenced by internal or political pressures.
The MPC is responsible for making interest rate decisions and determining the appropriate policy stance in the short to medium term. The CBN’s strategic session aimed to discuss the committee’s objectives and improvements in the monetary policy transmission mechanism, preparing for robust MPC meetings in the future.
