Muhammad Tukur
The bill, sponsored by Senator Mukhail Adetokunbo Abiru (APC, Lagos) and co-sponsored by all 41 others, seeks to amend Section 8 (2) of the CBN Act.
Currently, the section grants the CBN governor and deputy governors a five-year tenure, with the option for reappointment for another term not exceeding five years.
Pinnacle News reports that the 2007 CBN Act, which mandates the bank with overseeing the monetary and financial sector policies of the federal government, has remained unchanged for over 16 years, despite significant changes to the bank’s balance sheet and challenges in monetary policy implementation due to the evolving financial landscape.
The proposed legislation stipulates that in the event of a vacancy due to death or resignation of a CBN governor or deputy governor, the President can appoint an acting governor temporarily until the appointment of a substantive governor or deputy governor.
Furthermore, it proposes that upon a substantive appointment, the individual will serve a fresh term rather than completing the tenure of the previous CBN governor or deputy governor.
The bill also advocates for the establishment of the office of a Chief Compliance Officer for the apex bank, ranked as a deputy governor, who directly reports to the board and may be summoned to appear before the relevant committee of the National Assembly.
Senator Abiru, in his lead debate, emphasized the importance of the bill, stating that it will empower the bank to fulfill its principal objectives, including ensuring monetary and price stability, issuing legal tender currency in Nigeria, maintaining external reserves, promoting a sound financial system, and providing economic and financial advice to the federal government, in accordance with Section 2 of the Act.
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