Senate Working To Amend CBN Act, To Reduce Governor’s Powers

The Senate is considering changes to the CBN Act to separate the CBN Governor’s role as Chairman of the Board of the apex bank.

Currently, the CBN Governor serves as Chairman of the Board according to the CBN Act No. 7 of 2007.

VerseNews reports that the proposed amendment aims to align with national and international governance practices by dividing the roles of the head of Management and the head of the governing Board.

The amendment suggests adding a Deputy Governor to represent each of the six geopolitical zones in the country, contributing to CBN administration and policy.

To avoid conflicts of interest, the CBN Governor and Deputy Governors would be excluded from partisan politics or contesting elections while in office.

The proposed legislation includes other members, such as the Auditor General of the Federation and the Chairman of the Federal Inland Revenue Service, as Board members to improve fiscal and monetary policy synergy.

The amendment seeks to ensure that the CBN Governor can focus on fiscal and monetary policies rather than the politics of the institution.

The legislation allows the most Senior Deputy Governor to act on behalf of the CBN Governor when necessary.

It also aims to standardize CBN staff salaries and emoluments to enhance transparency and fairness.

The amendment criminalizes the use of foreign exchange for payments in domestic trade within Nigeria, except in foreign exchange transactions.

The changes are intended to reposition the banking system to better serve the country’s economic growth and investments.