Three bank chief executive officers have quit the board of the Nigerian Economic Summit Group.
They resigned on Wednesday in protest against NESG’s position on measures taken by the Central Bank of Nigeria to stabilise the financial system and fast-track economic recovery.
The CBN had initiated policies to mitigate the negative impacts of the coronavirus pandemic on the country.
The CEOs are Kennedy Uzoka, United Bank of Africa Plc Group Managing Director; Adesola Adeduntan, First Bank of Nigeria Plc Managing Director; and Abubakar Suleiman, Sterling Bank Plc Managing Director.
On Tuesday, NESG criticised CBN’s intervention policies as not being in the interest of the economy.
It was learnt that NESG criticisms of the federal government’s policies created a disagreement among its members.
A Tuesday statement titled, ‘Matters of Urgent Attention,’ which did not have the input of some NESG board members generated discontent within the group.
In a report, NESG said since the inception of the President Muhammadu Buhari administration, agriculture and the need to ensure zero hunger for Nigerians had received considerable attention.
But the group added that despite the budgetary allocations and huge amount of money disbursed by the CBN through the Anchor Borrowers’ Programme, a huge gap remained in meeting food requirements.
“Evidently, the issues are beyond money and therefore, require a complete overhaul of the management of, and support for the Agriculture sector and all related sectors – with a view to getting more value for our investments,” it had said.
It expressed its concern about how the CBN “has carried on the business of foreign exchange transactions, loan disbursements (intervention funds) and price fixings” without appropriate policy clarity, asserting that “this can be subject to abuses,” manipulations and market disruptions.
“We, therefore, respectfully request the appropriate authorities to properly review this policy to restore credibility into our financial sector,” the statement noted.
NESG also expressed concern about certain provisions of the Bank and Other Financial Institutions Act 2020 recently passed by the National Assembly, and in the process of being transmitted to the president for assent.
NESG said, “These are draconian, totalitarian and inimical to the development of a stable and transparently regulated financial sector. We respectfully request that the president should please withhold his assent until the bill is properly reviewed, amended and is made fit for purpose.”
