Business and Economy
Senate advocates amendments to CBN Act
Iyojo Ameh
The bills seeking to amend the Central Bank of Nigeria (CBN) Act to among others , bar serving governors from partisan politics passed second reading in the Senate.
The bills titled: “Central Bank of Nigeria (Establishment) (Amendment) Bill 2023” sponsored by Senator Sunday Karimi (APC – Kogi West) while the second one titled: “A Bill to amend the Central Bank of Nigeria Act 2007, and for matters connected therewith, 2023” was sponsored by Senator Darlington Nwokocha (LP – Abia Central).
It would be recalled that the former CBN governor, Godwin Emefiele, had early last year, attempted to run for Presidential ticket of the All Progressives Congress (APC) while in office .
Senator Karimi in the explanatory memorandum of his Bill , said it was aimed at amending the CBN Act to allow for greater accountability and transparency in the running of the Bank and to prohibit the use of foreign currency in local transactions in Nigeria.
He specifically proposed amendment to section 9(2) of the CBN Act which reads: “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 ottice.”
The amendment, as proposed by the Kogi West Senator , also seeks to prohibit the use of foreign currency for domestic transactions in Nigeria.
The Bill seeks amendment of Section 20 of the CBN Act, by inserting Section 20(A) immediately after the existing section 20, before the existing section 21.
On his part, Senator Nwokocha in his lead debate, said the amendment seeks to address all anomalies that has hindered the advancement of the apex bank to handle the ailing economy of the nation.
He said, “The thrust of this amendment is to create a people-centered Central Bank by delivering price and financial system stability and promoting sustainable economic development.
“As the nation grapples with economic issues, we need to reposition the CBN to grow the economy, regulate the exchange rate and unauthorize financial transactions and dollarizing the economy.
“This bill seeks to provide for among other things: Separate the head of Management from the head of the governing Board in line with national and international good corporate governance practices;
“Establish a proper governance architecture for the monetary authority for optimal policy and operational effectiveness;
“Enshrine real-time controls and effective accountability in the conduct of central banking in Nigeria
“Reposition the CBN towards pursuit and advancement of its core mandates given the Bank’s pivotal role in the economy; and
“Position the CBN as an apolitical entity that will become a worthy example in national and international monetary policy, banking sector regulation, currency management, and supervision.”
