By Atoyebi Nike
The House of Representatives on Thursday moved forward with major amendments to the Central Bank of Nigeria Act after the reform bill passed second reading without opposition. Lawmakers described the proposal as a necessary response to persistent governance failures, FX distortions and controversies that have shaken confidence in recent years.
Co-sponsor Jesse Onakalausi said the CBN’s structural weaknesses had become too evident to ignore, citing problems around policy communication, currency redesign issues and poor oversight. He explained that the bill aims to modernize the institution by separating the roles of governor and board chairman to avoid the concentration of power seen under the current law.
Ihonvbere and Onakalausi argued that global practice places day-to-day management under the governor while the board provides independent supervision, a structure the amendment now seeks to adopt. Additional reforms will strengthen the Monetary Policy Committee and align Nigeria’s regulatory framework with standards in jurisdictions such as the UK, South Africa, Brazil and the EU.
A major feature of the bill is the tightening of Ways and Means financing, which lawmakers said has been abused repeatedly by successive administrations. Sponsors described the proposed changes as the most far-reaching overhaul of the CBN Act since its enactment, with implications for monetary stability, governance and public confidence in the financial system.
