Senate: Second reading of the bill amending the CBN Act is passed

On the floor of the Red Chamber on Wednesday, a bill that aims to protect the nation’s top bank, the Central Bank of Nigeria (CBN), from the excessive influence of the Executive branch, passed second reading.

The measure, titled “A Bill for an Act to amend the Central Bank of Nigeria Act and for other related Matters,” was separately supported by Senators Sunday Karimi (Kogi West) and Darlington Nwokocha (Abia Central).

A Bill for an Act to alter the Central Bank (Establishment) Act 2007, to guarantee the Central Bank’s operations are more transparent and accountable, to ensure the enhancement of its functions, and for Connected Matters Therewith, 2023 was the title of Senator Karimi’s bill.

““The Bill sought to amend Sections 6(1), (2); 8(1), (2) (3) (4) (5); 12(1), (2) (3); 13(1) (2) (3) (4) and Paragraph 8 of the First Schedule to the Principal Act,” Senator Nwokocha stated during his lead debate.

By separating the Head of Management from the Head of the Governing Board, he said, the proposed amendment would “address the corporate governance and lack of ethical conduct that bedevilled the Central Bank Management over the years; enhance internal mechanisms for improved control system as well as checks and balances in line with global best practises;”

READ ALSO: Senate argues that Nigeria’s poor roads justify the purchase of N160 million SUVs

“Restore public confidence in the CBN as the institution that implements monetary policy and the banker’s bank for maximum effectiveness and resilience.”

Additionally, the proposed amendment will ensure that the CBN remains independent of all political affiliations, both internal and external.

The Senate would establish the post of Board Chairman and an efficient Governing Board to guarantee appropriate internal controls and sufficient upkeep of the CBN Act by the Management Committee in order to accomplish these goals through the proposed revisions. Establish a second Deputy Governor post to maintain a high degree of competency while ensuring geopolitical balance.

Additionally, the amendment would guarantee appropriate accountability and transparency in CBN operations and administration.

“Notwithstanding the Provisions of this Act or any written law in existence, the Governor and the Deputy Governor of the Bank shall not participate directly or indirectly in partisan politics, nor contest any election, during their tenure in office,” states Senator Karimi’s proposed amendment to section 9(2) of the CBN Act.

The amendment put out by Senator Karimi also aims to outlaw the usage of foreign money in Nigerian domestic business.