Two separate amendment bills demanding greater transparency in the operations of the Central Bank of Nigeria (CBN) have passed second reading in the senate.
Two bills seeking to bar the governor and deputy governors of the Central Bank of Nigeria (CBN) from participating in politics have passed second reading in the senate.
The first bill entitled: ‘Central Bank of Nigeria (Establishment Amendment) Bill 2023’ and sponsored Mr Steve Karimi, seeks to prevent a person occupying the office of central bank governor from participating in partisan politics.
The second one entitled: ‘A Bill to amend the Central Bank of Nigeria Act 2007, and for matters connected therewith, 2023’ and sponsored by Mr Darlington Nwokocha, seeks for amendments to enhance transparency in the operations of the apex bank.
The bills were read for the first time, consolidated into one and referred to the committee of the whole for final consideration.
Explaining the motivation for his bill, Karimi said the piece of legislation would if passed lead to greater accountability and transparency in the operations of the apex bank.
He also said his proposed amendment if passed will prohibit the use of foreign currency in local transactions in Nigeria.
Specifically, Karimi proposed amendments to section 9(2) of the CBN Act which reads: “Notwithstanding the Provisions of this Act or any written law in existence, the Governor and the Deputy Governor of the Bank shall not participate directly or indirectly in partisan politics, nor contest any election, during their tenure in office.”
The proposed amendment reads: “20(A) Prohibition of the use of foreign currency in democratic transactions:
“(1) No person or body corporate shall use any foreign currency as a means of exchange for goods, services and other transactions in markets supermarkets, hotels, restaurants, airports and other places of business in Nigeria except by a Bank, licensed Bureau De Change and other financial institutions duly authorized by the Central Bank of Nigeria to trade, deal and use such currency and no individual or business entity in Nigeria shall advertise, denominate or price its goods or services in any currency other than the Nigerian Naira and Kobo.
“(2) Any person who contravenes subsection (1) of this section commits an offence and shall be liable on conviction to: (a) in the case of an individual, to a fine of N250, 000.00 or a term of imprisonment not exceeding six months or both such fine and imprisonment; (b) in the case of a corporate entity to a fine of N1, 000,000 and a conviction of three months to its officers or directors who authorized or undertook the transaction.”
Debating on the bill, Karimi said: “I’m proposing that section 9 be amended further that will ban the CBN governor and deputies from participating in politics when they are in service,” he said.
“I am proposing that we bring in the auditor-general of the federation. Chair of FIRS and Chartered Institute of Bankers in Nigeria (CIBN) should be represented in the board of the CBN.
“The second area has to do with the CBN governor participating in politics like we have in the last election, we know the problem he almost caused for the nation,” he said.
Nwokocha while leading the debate on his bill said the CBN Act needs to be amended in order to regulate the bank to meet international standard practices.
He said the amendment will establish a proper governance for monetary policies in the country.
The lawmaker explained that the legislation seeks to: “Separate the head of management from the head of the governing Board in line with national and international good corporate governance practices.
“Establish a proper governance architecture for the monetary authority for optimal policy and operational effectiveness;
“Enshrine real-time controls and effective accountability in the conduct of central banking in Nigeria.
“Reposition the CBN towards pursuit and advancement of its core mandates given the Bank’s pivotal role in the economy; and 44) Position the CBN as an apolitical entity that will become a worthy example in national and international monetary policy, banking sector regulation, currency management, and supervision.”
