Senate Moves to Bar CBN Governor from Partisan Politics

* Process to amend Act scales second reading

Sunday Aborisade in Abuja

Two bills, which seek to prevent a serving Governor of Central Bank of Nigeria (CBN) from partisan politics, scaled the second reading on the floor of the Senate Wednesday.

The proposed amendments, which were however consolidated into one bill, equally sought to reposition the bank for efficiency.

One of the consolidated bills titled ‘Central Bank of Nigeria (Establishment) (Amendment) Bill 2023’ was sponsored by Senator Steve Karimi (APC – Kogi West).

The second one was titled: ‘A Bill to amend the Central Bank of Nigeria Act 2007, and for matters connected therewith, 2023’ was sponsored by Senator Darlington Nwokocha (LP – Abia Central). 

The former governor of the CBN, Godwin Emefiele, had attempted to contest the 2023 presidential primaries on the platform of the All Progressives Congress (APC) while in office. 

The move was widely condemned by Nigerians who wondered how a serving public servant can seek an elective office contrary to extant provisions of the constitution. 

Karimi, one of the sponsors of the consolidated bills, explained that it was aimed at amending the CBN Act to allow for greater accountability and transparency in the running of the bank and to prohibit the use of foreign currency in local transactions in Nigeria.

Karimi’s proposed amendment to section 9(2) of the  CBN Act read: “Notwithstanding the provisions of this Act or any written law in existence, theo governor and the deputy governor of the bank shall not participate directly or indirectly in partisan politics, nor contest any election, during their tenure in ottice.”

The Kogi West lawmaker’s bill also seeks to prohibit the use of foreign currency for domestic transactions in Nigeria. 

The bill seeks amendment of Section 20 of the CBN Act, by inserting Section 20(A) immediately after the existing section 20, before the existing section 21.

The proposed amendment read: “20(A) Prohibition of the use of foreign currency in democratic transactions:

“(1) No person or body corporate shall use any foreign currency as a means of exchange for goods,

services and other transactions in markets supermarkets, hotels, restaurants, airports and other places of business in Nigeria except by a bank, licensed bureau de change and other financial institutions duly authorized by the Central Bank of Nigeria to trade, deal and use such currency and no individual or business entity in Nigeia shall advertise, denominate or price

its goods or services in any currency other than the Nigerian naira and kobo.

“(2) Any person who contravenes subsection (1) of this section commits an offence and shall be liable on conviction to: (a) in the case of an individual, to a fine of N250,000.00 or a term of imprisonment not exceeding six months or both such fine and imprisonment;

“(b) in the case of a corporate entity to a fine of N1,000,000 and a conviction of three months to its officers or directors who authorized or undertook the transaction.”

On his part, Nwokocha, who sponsored the second bill,  listed the general principles of the his bill to include: “This bill seeks to address all anomalies that has hindered the advancement of the apex bank to handle the ailing economy of our nation.”

He said: “The thrust of this amendment is to create a people-centred Central Bank by delivering price and financial system stability and promoting sustainable economic development. 

“As the nation grapples with economic issues, we need to reposition the CBN to grow the economy, regulate the exchange rate and unauthorize financial transactions and dollarizing the economy.

“This bill seeks to provide for among other things: Separate the head of management from the head of the governing board in line with national and international good corporate governance practices;

“Establish a proper governance architecture for the monetary authority for optimal policy and operational effectiveness;

“Enshrine real-time controls and effective accountability in the conduct of central banking in Nigeria

“Reposition the CBN towards pursuit and advancement of its core mandates given the bank’s pivotal role in the economy; and

“Position the CBN as an apolitical entity that will become a worthy example in national and international monetary policy, banking sector regulation, currency management and supervision.”