A bill proposing a single, non-renewable six-year term for the Governor and Deputy Governors of the Central Bank of Nigeria (CBN) has passed its second reading in the House of Representatives.
Under the current CBN Act 2007, the governor and deputy governors serve a renewable five-year term. The new bill seeks to replace this with a single tenure to reduce political interference and promote continuity in monetary policy.
The bill is sponsored by Jesse Okey-Joe Onuakalusi, representing Oshodi/Isolo federal constituency, and Julius Ihonvbere, Majority Leader of the House.
Lawmakers say the amendment aims to modernise the CBN, strengthen internal controls, and bring the bank’s governance structure closer to international standards.
The proposed law introduces several major reforms:
- Single six-year tenure for the CBN governor and deputies, without renewal.
- Unified exchange rate and a ban on using foreign currency for local transactions except through authorised channels.
- Separation of roles between the CBN governor and the chairman of the board to avoid concentration of power.
- Limits on Ways and Means borrowing, capping it at 10 per cent of the previous year’s actual revenue to curb excessive government borrowing from the CBN.
- Mandatory 90-day notice and an impact assessment before any currency redesign or demonetisation.
- Stronger financial stability tools, including regular stress tests and enhanced macro-prudential supervision.
- Reform of the Monetary Policy Committee (MPC) by adding independent external experts.
- Quarterly public reports on monetary policy decisions, economic forecasts, and financial stability indicators.
Presenting the bill, Onuakalusi described the proposals as “structural and forward-looking reforms” aimed at restoring confidence in Nigeria’s monetary system.
He said the bill bans the CBN governor and deputies from taking part in partisan politics, adding that: “The central bank is the heart of our financial system, yet certain provisions of the current Act no longer meet today’s governance and monetary policy realities.”
He stressed that the bill is not targeted at any individual.
“This bill is not targeted at any individual or administration. It is a structural reform for economic stability, transparency, accountability, and sustainable governance,” the lawmaker said.
After deliberations, lawmakers unanimously supported the amendments when Deputy Speaker Benjamin Kalu called for a voice vote.
The House debate comes months after the Senate passed a similar bill for second reading in February 2024.
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