Central
Bank of Nigeria’s (CBN) decision to spend N500million on renovation and
infrastructural development of Lisabi Grammar School, Abeokuta, Ogun State, has
opened its flank for another round of criticism, Doing good is not inherently
bad; but it raises eyebrows when a public institution like the CBN is
concerned. Corporate Social Responsibility (CSR), as they call it, is done by
many business concerns as a way of giving back to the society part of what they
have taken from it.
But
what they spend on CSR is usually taken from their profits. This is one reason
many Nigerians believe it should not be the duty of the CBN to embark on such
projects because it has no tangible product that it sells.
As a
matter of fact, that was one of the reasons many Nigerians asked questions when
in February last year the apex bank donated N100million to the Kano State
Government, for delivery to victims of the Boko Haram-induced violence in the
state. The bank explained then that under its statute, it is empowered to make
such donations, provided they are approved by its board.
Consequently,
there should be no issues on the Kano donation since it was approved by its
board; in other words, the bank had fulfilled all righteousness. Not many
Nigerians were impressed with this answer, and many people began calling for a
tinkering with the autonomy of the bank in a way that would clip its wings for
such expenditures.
A
raging debate thus ensued, with some former governors of the bank, former
finance ministers and other financial experts wading in, in defence of the CBN,
to protect it from the undue influence of politicians. Somehow, a middle course
was reached with some people suggesting that we should demarcate between the
bank’s operational autonomy and its budgeting autonomy.
This
seems sensible in that it both protects the apex bank’s autonomy to play its
regulatory role in the economy as well as ensure that it submits its budgets to
the National Assembly like other government agencies.
However,
no further action was taken on the matter ever since. But, the donation to
Lisabi Grammar School, as part of the apex bank’s development policy of
intervention in schools, has once again brought to the fore the question of how
far the apex bank can go in spending money without appropriation, beyond the
approval by its board?
No
doubt the projects for which the money was donated, which included a 200-seater
capacity hall, an ultra modern library, laboratory for Physics, Chemistry and
Biology; staff quarters, two boreholes as well as two buses are laudable, but
should it be the business of the CBN? Being the alma mater of the bank’s deputy
governor (operations), Mr. Tunde Lemo, won’t it raise question of abuse of
office? In other words, would such generosity have been the school’s lot if Mr
Lemo is not its product?
The
fact is, N500million is a lot of money; it will go a long way in putting smiles
on the faces of students and staff in some five colleges, at the rate of
N100million per school. Yes, when a school clocks 70, like Lisabi Grammar
School, it calls for celebration and retrospection. Without doubt, if the
donation had come from the old students, no one would have questioned it;
irrespective of the amount involved.
Something
must be wrong with whatever process that allows the CBN such latitude without
appropriation by the National Assembly. Even the government that appoints the
CBN governor has oversight done on its budget by the National Assembly. The
apex bank is a mere custodian of public wealth; it should not give the
impression that it is its owner.
The nation
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