House of Representatives yesterday passed second reading a bill seeking to introduce a single, non-renewable six-year tenure for the Governor and Deputy Governors of the Central Bank of Nigeria (CBN), challenging the current CBN Act 2007 that allows an initial five-year term with reappointment option.
The legislation, jointly sponsored by Jesse Okey Joe Onuakalusi (Oshodi/Isolo Federal Constituency) and Majority Leader Julius Ihonvbere, proposes sweeping reforms to modernise the apex bank’s governance, unify the exchange rate system, ban foreign currencies for domestic transactions except via authorised channels, and align operations with international best practices.
Key provisions include separating the roles of CBN Governor and Board Chairman to curb power concentration, capping Ways and Means advances at 10 per cent of the previous year’s actual revenue to check inflationary financing, mandating 90 days’ notice with impact assessment and National Assembly briefing for currency redesign, and enhancing the Monetary Policy Committee with independent external experts plus macro-prudential tools and stress testing.
Onuakalusi, opening the debate, described the changes as “structural and forward-looking reforms” to protect the economy, restore monetary policy confidence, and bar the CBN Governor and deputies from partisan politics, stressing that the current Act no longer suits today’s realities amid past controversies like Godwin Emefiele’s tenure and the disruptive naira redesign.
He said: “The Central Bank of Nigeria is too critical an institution to operate under a framework that no longer reflects Nigeria’s economic realities or international best practices.
"This bill is not targeted at any individual or administration. It is a structural reform for economic stability, transparency, accountability, and sustainable governance.”
Deputy Speaker Benjamin Kalu put the bill to a voice vote, with lawmakers unanimously endorsing its passage at second reading. A similar Senate bill for a single six-year tenure had passed second reading in February 2024.
