House of Representatives and the Central Bank of Nigeria, Governor Lamido Sanusi, on Monday disagreed over the power of the bank to authorise expenditure without recourse to the National Assembly.
Members of the House Committee on Banking and Currency grilled Sanusi for hours on the matter in Abuja.
However, Sanusi insisted that the bank’s spending and donations to organisations and individuals had a legal backing under the CBN Act.
The committee, headed by Mr. Chukwudi Onyeriri, was mandated by the House to conduct a public hearing into the “expenditure of public funds by the CBN and AMCON”.
The House had described some of the actions of the CBN, including the bail out to banks, industries and donation of funds to individuals and organisations as “abuse of funds”.
The CBN, through the Asset Management Company of Nigeria, rescued troubled banks in 2009 with N620bn.
Financial bailout also went to the power sector, aviation, the Bank of Industry and Small and Medium Term Enterprises.
The CBN also donated N100m and N50m to the Kano and Madalla bomb blast victims respectively earlier in the year.
Defending the decisions, Sanusi said up to 4, 000 companies had received financial support from the apex bank.Continue reading