The House of Representatives has taken a significant step towards strengthening the Central Bank of Nigeria (CBN) by passing a bill sponsored by Hon Okey-Joe Onuakalusi MHR to amend the CBN Act 1991 for second reading.
The proposed legislation aims to enhance oversight, transparency, and governance at the apex bank.
Key Objectives of the Bill
- Restore sound corporate governance by separating the roles of the Governor and Board Chairman to avoid conflict of interest
- Strengthen the Monetary Policy Committee and improve independence
- Align Nigeria’s framework with global standards in the UK, South Africa, Brazil, and the EU
- Tighten Ways and Means financing to prevent fiscal abuse and ensure fiscal responsibility
- Introduce a 90-day notice period for major monetary actions to avoid sudden policy shocks
- Improve reporting standards, including submission of annual audited accounts and quarterly reports on monetary policy decisions
Rationale Behind the Bill
The bill seeks to address governance lapses, foreign exchange distortions, poor policy communication, and weak oversight mechanisms that have exposed structural gaps in the CBN Act.
Hon. Okey-Joe Onuakalusi, the sponsor of the bill, emphasized that the proposed legislation will refocus on safeguarding the naira and improving transparency in foreign exchange management.
Implications of the Bill
If passed, the bill will mark a significant milestone in Nigeria’s efforts to enhance its financial governance framework and align with international best practices. The proposed amendments will promote transparency, accountability, and stability in the financial sector, ultimately benefiting the Nigerian economy and its citizens.
Hon Okey-Joe Onuakalusi is the house member representing the good people of Oshodi Isolo Constituency 2 Lagos State.
