The House of Representatives has given its nod to a bill aimed at curtailing the constitutional powers vested in the Governor of the Central Bank of Nigeria (CBN).
The bill, which successfully passed the second reading in the House, proposes the creation of a distinct position for the Chairman of the Board of the CBN, separate from the Governor’s role.
The bill’s sponsor, Hon. Francis Waive, underscored the necessity of this amendment during a plenary session in Abuja. He advocated for the bifurcation of the two roles to ensure a system of checks and balances, preventing the concentration of power in the hands of the governor. The bill further stipulates that in scenarios necessitating a currency swap or Naira redesign, the bank would be obligated to recall its notes or coins, subject to a notice period of no less than one year.
This proposed amendment to Section 6 of the Central Bank of Nigeria Act marks a significant milestone in fortifying the governance structure of the CBN. By distinguishing between the roles of the Chairman of the Board and the Governor of the Bank, the amendment introduces an element of independence, oversight, and accountability, crucial for the CBN’s efficient operation.
READ:BREAKING: Industrial Court Stops Labor Unions from Embarking on Nationwide Strike
In line with international best practices, the proposed amendment reflects a commitment to transparent and judicious management of monetary policy. The revised Section 6 mandates that the Chairman of the Board shall be a former Governor of the CBN, a former Chairman of the Bank, or a former Managing Director of a bank, thereby ensuring experienced leadership at the helm.