The House of Representatives on Thursday passed for second reading a bill seeking to amend the Central Bank of Nigeria (CBN) Act, 2007, to provide for a single, non-renewable six-year tenure for the Governor and Deputy Governors of the apex bank.

The proposed amendment contrasts with the existing Section 8(2) of the CBN Act, which provides for an initial five-year tenure for the CBN Governor and Deputy Governors, renewable for a second term of five years.

The bill, sponsored by Rep. Jesse Okey-Joe Onuakalusi (PDP–Lagos) and the House Majority Leader, Rep. Julius Ihonvbere (APC–Edo), is aimed at strengthening the operational independence, accountability and corporate governance structure of the Central Bank in line with global best practices.

Key Provisions

Leading debate on the bill, Onuakalusi said the proposed legislation also seeks to unify Nigeria’s exchange rate regime and prohibit the use of foreign currencies for domestic transactions, except through authorised channels.

He explained that the bill proposes a clear separation of the roles of the CBN Governor and the Chairman of the Bank’s Board to prevent excessive concentration of power and ensure effective professional oversight.

According to him, the amendment further seeks to restrict the CBN’s Ways and Means advances to the Federal Government to a maximum of 10 per cent of the previous year’s actual revenue, as a safeguard against fiscal abuse and inflationary financing.

The bill also mandates that the CBN Governor must give at least 90 days’ notice to the National Assembly, accompanied by an impact assessment, before embarking on any currency redesign or demonetisation exercise.

Onuakalusi said additional provisions of the bill are designed to strengthen financial stability oversight through enhanced macro-prudential tools and regular stress testing of the financial system.

He added that the bill proposes reforms to the Monetary Policy Committee (MPC) by allowing the inclusion of independent external experts, with the aim of improving the quality and credibility of monetary policy decisions.

To enhance transparency, the proposed law would require the CBN to publish quarterly reports on monetary policy decisions, economic forecasts and key financial stability indicators.

Rationale for Reform

Onuakalusi described the bill as a set of “structural and forward-looking reforms” intended to protect the Nigerian economy, restore confidence in monetary policy and ensure that the CBN remains transparent and professionally managed.

He noted that the push for a single, non-renewable tenure followed controversies that trailed the tenure of former CBN Governor, Godwin Emefiele, who was alleged to have harboured presidential ambitions while still in office.

He recalled that the controversial naira redesign carried out by the CBN a few months before the 2023 general elections led to severe cash shortages, disrupting businesses and daily economic activities across the country.

“The Central Bank of Nigeria is the heart of our financial system, yet certain provisions of the current Act no longer reflect today’s governance and monetary policy realities,” Onuakalusi said.

He stressed that the bill expressly prohibits the CBN Governor and Deputy Governors from engaging in partisan politics.

“This bill is not targeted at any individual or administration. It is a structural reform aimed at economic stability, transparency, accountability and sustainable governance,” he added.

Legislative Outcome

The bill received overwhelming support from lawmakers during the plenary session and was adopted through a voice vote conducted by the Deputy Speaker, Rep. Benjamin Kalu.

The House’s action follows a similar development in February 2024, when the Senate passed for second reading a bill proposing a single, non-renewable six-year tenure for the CBN Governor and Deputy Governors.

The bill has now been referred to the appropriate House committee for further legislative consideration.