The House of Representatives has passed for second reading a bill seeking to amend the Central Bank of Nigeria (CBN) Act in order to boost oversight, transparency, and governance at the apex bank.
The bill titled, “A Bill for an Act to Amend the Central Bank of Nigeria Act, 1991, to allow for proper day-to-day operations, professional oversight, and enhance checks and balances, and for other matters connected thereto, 2025,” was co-sponsored by Julius Ihonvbere, the House Leader and Jesse Onakalausi from Lagos, and scaled second reading during plenary on Thursday.
Leading debate on the bill, Onakalausi cited governance lapses, FX distortions, poor policy communication and weak oversight mechanisms as some of the issues the bill seeks to address.
“Developments in recent years, ranging from governance concerns, foreign exchange distortions, monetary policy inconsistency, weak oversight mechanisms, to the challenges witnessed around currency redesign and policy communication have exposed structural gaps in the principal Act,” he said.
Onakalausi explained that a key objective of the bill is to restore sound corporate governance. He noted that while, the governor manages day-to-day operations, the Board provides oversight, an arrangement that ensures institutional balance.
He however said both roles are meant to be separate to avoid conflict of interest. “This bill separates these roles to ensure professional oversight without interference in day-to-day operations”, he added.
He informed that the propsoed legislation also introduces reforms targeted at strengthening the Monetary Policy Committee, improving independence, and aligning Nigeria’s framework with global standards in the UK, South Africa, Brazil and the EU.
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According to him, a major component of the bill is the tightening of Ways and Means financing. “It prevents fiscal abuse as Section 38 (Ways and Means Advances) has historically been one of the most abused provisions under the CBN Act. This bill introduces a clear limit, 10% of the previous year’s actual revenue , to prevent inflationary financing of government deficits and ensure fiscal responsibility,” he said.
The Lawmaker noted that the also bill focuses on safeguarding the naira and improving transparency in foreign exchange management.
“It also introduces a 90-day notice, impact assessments, mandatory National Assembly briefing before major monetary actions like redesign or demonetisation, ensuring that sudden policy shocks are avoided”, he further said.
The bill also proposes new reporting standards that will require the apex bank to submit its annual audited accounts within two months, provide quarterly reports on monetary policy decisions, and maintain a publicly accessible website containing all its publications.
