Senator Mukhail Adetokunbo Abiru, representing Lagos East and serving as the Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, spearheaded the debate on a pivotal bill for an Act to amend the Central Bank of Nigeria (CBN) Act 2007, as the Nigerian Senate passed the critical amendment bill for the second reading.
The bill, which was initially introduced and read for the first time in the Senate on January 30th, 2024, saw strong support from Senator Abiru, a retired bank Chief Executive, who served as its primary sponsor. Notably, forty-one committee members of the Banking, Insurance, and other Financial Institutions co-sponsored the bill, underscoring its significance.
In his address during the debate, Senator Abiru emphasized the necessity of the proposed amendments to enhance the apex bank’s ability to fulfill its mandates effectively, aligning with section 2 of the Act. He highlighted the prolonged absence of amendments to the Act since its enactment in 2007, stressing the need to address evolving challenges in monetary policy implementation and the financial sector landscape.
Among the key provisions outlined in the bill is the establishment of a Coordinating Committee for Monetary and Fiscal Policies to ensure coherence in policy formulation and implementation. The proposed committee’s membership includes key stakeholders such as the Minister of Finance, Minister of Budget and Economic Planning, and Governor of the Central Bank of Nigeria, among others.
Additionally, the bill advocates for a six-year single term tenure for the CBN Governor and deputy governors, alongside recommendations for the appointment and tenure of external directors on the CBN board. It also proposes the elevation of at least one career staff to the position of Deputy Governor from within the Bank.
Furthermore, the bill seeks to introduce measures to regulate advances granted by the apex bank to the Federal Government, imposing caps and repayment conditions to minimize default risks and ensure fiscal responsibility.
In a parallel development, the Senate Committee on Banking, Insurance, and other Financial Institutions conducted screening exercises for four directors of the CBN, further underscoring the Senate’s commitment to reinforcing regulatory frameworks within the financial sector. Among those screened were Mr. Robert Agbede, Mr. Ado Yakubu Wanka, Prof. Muritala Saba Sagaji, and Mrs. Muslimat Olanike Aliyu.