The House of Representatives on Thursday advanced a bill seeking major amendments to the Central Bank of Nigeria (CBN) Act as part of efforts to improve transparency, governance, and oversight at the apex bank.
The bill, sponsored by House Leader Julius Ihonvbere and Jesse Onakalausi, passed second reading without opposition during plenary.
Titled A Bill for an Act to Amend the Central Bank of Nigeria Act, 1991, to Allow for Proper Day-to-Day Operations, Professional Oversight, and Enhance Checks and Balances, and for Other Matters Connected Thereto, 2025, the proposed legislation responds to longstanding concerns about weak governance structures at the CBN.
These concerns gained prominence in recent years following controversies over foreign exchange management, monetary policy inconsistencies, and the 2022 naira redesign exercise.
Leading debate on the floor, Onakalausi argued that reforms to the CBN Act have become necessary in light of economic developments and governance lapses.
“The CBN plays a central role in stabilising the financial system, ensuring monetary credibility, safeguarding price stability, and promoting public confidence in the economy,” he said.
He listed FX distortions, poor policy communication, and weak oversight mechanisms as some of the structural gaps the bill seeks to correct.
A key proposal in the amendment is the separation of the roles of CBN Governor and Board Chairman. Onakalausi noted that in many global jurisdictions, the governor manages daily operations while the board provides independent oversight—an arrangement that prevents the concentration of power.
“The current Act merges both roles, creating room for conflict of interest. This amendment separates them to restore sound corporate governance,” he explained.
The bill also seeks to strengthen the Monetary Policy Committee, improve the bank’s operational independence, and align Nigeria’s regulatory framework with international standards practiced in the UK, South Africa, Brazil, and the EU.
A major highlight of the legislation is the tightening of provisions on Ways and Means financing.
“This bill introduces a clear limit—10% of the previous year’s actual revenue—to prevent inflationary financing of government deficits and promote fiscal discipline,” Onakalausi said, describing the current Section 38 as one of the most abused components of the Act.
Other reforms include measures to protect the naira, enhance transparency in FX management, and prevent sudden policy actions that could destabilize the economy. The bill proposes a mandatory 90-day notice, impact assessment reports, and National Assembly briefing before major actions such as currency redesign or demonetisation.
To improve accountability, the CBN will be required to submit its audited accounts within two months of year-end and provide quarterly reports on monetary policy decisions. It must also maintain a publicly accessible website containing all official publications.
Among the structural amendments are a revised Section 6, which provides for “a professional Chairman separate from the Governor,” and a modification to Section 8, proposing a single non-renewable six-year term for the Governor and Deputy Governors.
To enhance continuity and reduce political interference, the bill mandates that at least two Deputy Governors must be appointed from within the CBN’s pool of Directors.
The reconstituted Monetary Policy Committee (MPC) will include the Governor, four Deputy Governors, two board members, and four external experts who must be independent and barred from holding public office.
If passed, the amendment will represent one of the most significant overhauls of the CBN Act in decades, with far-reaching implications for governance, monetary policy, and Nigeria’s financial stability.
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