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A bill proposing a single, non-renewable six-year tenure for the governor and deputy governors of the Central Bank of Nigeria (CBN) has passed its second reading in the House of Representatives.
The proposed amendment challenges the existing provisions of the CBN Act 2007, which currently allow the governor and deputy governors to serve an initial five-year term with the option of reappointment for another five years. Beyond tenure limits, the bill introduces broad reforms aimed at strengthening the apex bank’s governance framework and aligning its operations with international best practices. It also seeks to unify Nigeria’s exchange rate system and ban the use of foreign currencies for domestic transactions except through authorized channels.
The legislation is jointly sponsored by Jesse Okey Joe Onuakalusi, representing Oshodi-Isolo federal constituency, and House Majority Leader Julius Ihonvbere. According to the sponsors, the objective is to modernize the CBN, improve oversight, and enhance corporate governance.
Key provisions include separating the roles of CBN governor and board chairman to prevent concentration of power and ensure professional oversight. The bill also proposes capping Ways and Means advances at 10 percent of the previous year’s revenue to curb inflationary financing and fiscal abuse. Additionally, before any currency redesign or demonetization exercise, the CBN governor would be required to give 90 days’ notice, present an impact assessment, and brief the National Assembly. The legislation also seeks reforms to the Monetary Policy Committee, introducing independent external experts and strengthening financial stability oversight through macroprudential tools and regular stress testing.
The push for a single-term tenure follows controversies during the tenure of former CBN governor Godwin Emefiele, including allegations of presidential ambitions and the contentious naira redesign policy, which led to widespread cash shortages ahead of the general election. Opening the debate, Onuakalusi described the proposed changes as “structural and forward-looking reforms” aimed at protecting the economy, restoring confidence in monetary policy, and enhancing accountability.
He emphasized that the bill bars the CBN governor and deputy governors from participating in partisan politics.
“The Central Bank is the heart of our financial system, yet certain provisions of the current Act no longer meet today’s governance and monetary policy realities,” Onuakalusi said. “The Central Bank of Nigeria is too critical an institution to operate under a framework that no longer reflects Nigeria’s economic realities or international best practices. This bill is not targeted at any individual or administration; it is a structural reform for economic stability, transparency, accountability, and sustainable governance.”
When Deputy Speaker Benjamin Kalu put the bill to a voice vote, lawmakers unanimously endorsed its passage at second reading.
A similar bill proposing a single six-year, non-renewable tenure for the CBN governor and deputy governors had earlier passed second reading in the Senate in February 2024.
