The House of Representatives has begun formal steps to overhaul the Central Bank of Nigeria (CBN) Act, seeking stronger transparency, clearer oversight, and tighter governance at the nation’s apex financial institution. The proposed amendments, co-sponsored by House Leader Prof. Julius Ihonvbere and Lagos lawmaker Jesse Onakalausi, scaled second reading on Thursday after receiving broad support from lawmakers.
The bill—officially titled the Central Bank of Nigeria Act Amendment Bill, 2025—comes in response to long-standing concerns about gaps in the CBN’s governance structure. Recent national debates around foreign exchange management, inconsistent monetary decisions, and the controversial 2022 currency redesign heightened calls for a more accountable and professionally supervised central bank.
During plenary, Onakalausi explained that the goal of the legislation is to modernize the CBN’s operations while ensuring it remains autonomous but answerable to the Nigerian public. He noted that in many advanced economies, the central bank governor manages day-to-day affairs while a separate board chair provides oversight. However, Nigeria’s current law merges both roles, a structure he argued concentrates too much power and weakens checks and balances.
A key proposal in the bill is the separation of the positions of Governor and Board Chairman to restore sound corporate governance. Other amendments include restructuring the Monetary Policy Committee (MPC) to enhance expertise and independence, limiting Ways and Means advances to 10% of previous-year revenue to curb fiscal abuse, and mandating a 90-day notice with impact assessments before major monetary actions such as currency redesign.
The bill also seeks improved reporting standards, requiring audited annual accounts within two months and quarterly updates on monetary policy. It proposes that two deputy governors come from within the CBN to promote continuity, while external MPC members must be fully independent. If eventually passed, the amendments would represent one of the most comprehensive reforms of the CBN Act in decades and could significantly reshape Nigeria’s monetary governance framework.
source: punch