Lawmakers push for major changes to CBN Act to boost transparency
The House of Representatives has started work on a bill to amend the Central Bank of Nigeria (CBN) Act, aiming to improve transparency and oversight at the apex bank. The bill, co-sponsored by Julius Ihonvbere and Jesse Onakalausi, passed its second reading without opposition on June 20, 2024. Lawmakers say the changes are necessary due to recent controversies over monetary policy and governance lapses. If enacted, the reforms could reshape how the CBN operates and strengthen checks and balances in Nigeria’s financial system.
What we know
- The proposed bill seeks to separate the roles of CBN Governor and Board Chairman to avoid concentration of power and improve oversight.
- It introduces a cap on Ways and Means financing, limiting it to 10% of the previous year's revenue to prevent fiscal abuse.
- The bill mandates a 90-day notice and National Assembly briefing before major monetary actions, such as currency redesign.
- New reporting standards will require the CBN to submit annual audited accounts within two months and provide quarterly policy reports.
- The reforms align Nigeria’s central banking framework with global standards and aim to restore public confidence after recent policy controversies.
