A bill proposing a single, non-renewable six-year tenure for the governor and deputy governors of the Central Bank of Nigeria (CBN), passed its second reading in the house of representatives on Thursday, December 11.
Section 8(2) of the CBN Act 2007 provides for a five-year tenure for the governor and deputy governors of the apex bank, who are also eligible for re appointment for another five-year term.
The proposed legislation also seeks to unify the exchange rate and prohibit the use of foreign currency for domestic transactions except through authorised channels.
The bill, sponsored by Jesse Okey-Joe Onuakalusi, representing Oshodi/Isolo Federal Constituency, and Julius Ihonvbere, the majority leader, aims to modernize the operations of the CBN, strengthen oversight, and align its corporate governance with international standards.
It proposes separating the roles of the governor and the board chairman to prevent the concentration of power and ensure proper professional supervision.
The bill also seeks to limit Ways and means advances to 10% of the previous year’s actual revenue, in order to prevent fiscal abuse and curb inflationary financing.
Under the draft law, the CBN governor would be required to provide 90 days’ notice, conduct an impact assessment, and brief the national assembly before implementing any currency redesign or demonetisation.
Additionally, the amendment aims to enhance financial stability oversight through macro prudential tools and regular stress tests, reform the Monetary Policy Committee (MPC) by including independent external experts for better decision-making, and improve transparency through quarterly reports on monetary policy decisions, economic forecasts, and financial stability indicators.
The push for a single, non-renewable six-year tenure for the CBN governor follows controversies that trailed Godwin Emefiele’s tenure, during which he allegedly nursed a presidential ambition while in office.
A few months before the general election, the CBN under Godwin Emefiele implemented a controversial naira redesign aimed at curbing corruption and improving cash management.
However, the exercise caused severe cash shortages, disrupting businesses, trade, and daily life across the country.
During Thursday’s plenary, Onuakalusi described the proposals as structural and forward-looking reforms intended to protect the Nigerian economy, restore confidence in monetary policy, enhance accountability, and ensure that the CBN remains strong, transparent, and professionally managed.
He noted that the bill clearly prohibits the CBN governor and deputy governors from participating in partisan politics.
Onuakalusi said, “The central bank is the heart of our financial system, yet some provisions of the current Act no longer reflect today’s governance and monetary policy realities.
“The CBN is too critical an institution to operate under a framework that no longer aligns with Nigeria’s economic realities or international best practices.
“This bill is not aimed at any individual or administration.
“It is a structural reform designed to ensure economic stability, transparency, accountability, and sustainable governance.”
Lawmakers voted unanimously in support of the bill following a voice vote led by deputy speaker Benjamin Kalu.
Earlier, in February 2024, a similar bill proposing a single, non-renewable six-year term for the governor and deputy governors of the CBN had passed its second reading in the senate.
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