A bill seeking major changes to the Central Bank of Nigeria Act has passed second reading in the house of representatives.
Gatekeepers News reports that the proposed amendment recommends a single, non-renewable six-year tenure for CBN Governor and deputy Governors, replacing the current five-year term that allows re-appointment.
The bill, sponsored by Jesse Okey-Joe Onuakalusi and Majority Leader Julius Ihonvbere, also aims to stop the use of foreign currency in local transactions except through authorised channels and introduce a unified exchange rate.
Lawmakers say the amendments are intended to modernise the apex bank’s structure, strengthen oversight and align its governance with international standards.
Part of the proposal includes separating the roles of CBN Governor and board chairman to prevent concentration of power.
It also seeks to limit Ways and Means borrowing to 10 percent of the previous year’s actual revenue to curb fiscal misuse.
The bill further requires the CBN to give 90 days’ notice and submit an impact assessment to the national assembly before any currency redesign or demonetisation exercise.
Other provisions focus on improving financial system stability through enhanced stress tests, adding independent external experts to the monetary policy committee and publishing quarterly updates on monetary decisions and economic indicators.
The push for a single tenure follows controversies from the tenure of former Governor Godwin Emefiele, whose period in office was marred by political concerns and the naira redesign, which created widespread cash shortages and disrupted economic activities.
During the debate, Onuakalusi said the proposed changes are structural and forward-looking reforms meant to strengthen monetary policy, increase transparency and ensure the CBN remains professionally managed.
He added that the bill also bars the CBN governor and deputy governors from participating in partisan politics.
Lawmakers unanimously supported the bill during a voice vote conducted by Deputy Speaker Benjamin Kalu.
