Why Nigeria’s Central Bank Is Paralyzed by Politics

The Nigerian central bank has finally set a date for its much-awaited Monetary Policy Committee meeting after several months of delays and uncertainty. The panel has kept the main lending rate at a record high of 14 percent since July 2016, and easing could help to support the economy as it recovers after a contraction in 2016. The postponement to April 3 and 4 follows doubt on whether the MPC will convene at all after completely missing the January meeting. It has been paralyzed by a battle between the nation’s lawmakers and President Muhammadu Buhari.

It lacks the quorum necessary to convene a meeting. Usually made up of 12 members, the committee was down to 10 last year, before five retired after serving out their tenures. Six members are required for a quorum, and they must include the governor and a deputy governor, or two deputy governors. Buhari has nominated six panel members, including two deputy governors. But the Senate refused to consider the nominations, leading to the cancellation of January’s meeting and the postponement of the March one to early April. The Senate is now set to screen the nominees.