The House of Representatives in Nigeria has approved the second reading of a bill seeking to amend the Central Bank of Nigeria (CBN) Act. The proposed amendments, sponsored by Francis Waive, aim to address various critical aspects of the Act to enhance the effectiveness, transparency, and accountability of the central bank and its operations.
The key focus of the proposed amendment is on Section 6 of the CBN Act, specifically the separation of the Chairman of the Board from the CBN Governor. Waive highlighted that the proposed change introduces a significant shift by mandating that the Chairman of the Board must be a former Governor of the CBN, a former Chairman of the Bank, or a former Managing Director of a bank. This move is intended to enhance independence and oversight, reduce the concentration of power, and provide unbiased oversight of the CBN’s operations.
The amendment also aims to prevent conflicts of interest, promote transparency, and increase public confidence in the CBN’s operations. Waive emphasized the importance of having an independent Chairman who can symbolize impartiality and ensure the integrity of monetary and financial policies.
Additionally, the bill seeks to amend Section 7(1) to enhance the operational efficiency and accountability of the CBN to the Nigerian public. The proposed amendments are part of ongoing efforts to strengthen the governance structure of the central bank and align it with best practices in financial regulation and supervision.