THE Senate yesterday passed a bill that will prohibit a serving governor of the Central Bank of Nigeria from engaging in partisan politics while also repositioning the bank for efficiency.
A second bill was also considered, which sought to outlaw the use of foreign currencies in domestic commerce.
Senator Steve Karimi (All Progressives Congress – Kogi West) sponsored one of the consolidated bills, “Central Bank of Nigeria (Establishment) (Amendment) Bill 2023,” while Senator Darlington Nwokocha (Labour Party – Abia Central) sponsored the other, “A Bill to Amend the Central Bank of Nigeria Act 2007, and for Matters Connected Therewith, 2023.”
Recall that the immediate previous CBN governor, Godwin Emefiele, attempted to run for the APC presidential primary in 2023 while still in office.
Nigerians were outraged, wondering how a serving public worker could run for elective office in violation of the constitution’s current requirements.
Karimi noted in the bill’s explanatory memorandum that the proposed law aimed at altering the CBN Act to provide for better accountability and transparency in the apex bank’s operations, as well as prohibiting the use of foreign currency in domestic transactions in Nigeria.
According to Arimi’s proposed amendment to Section 9(2) of the CBN Act, “notwithstanding the provisions of this Act or any written law in existence, the Governor and Deputy Governor of the bank shall not participate directly or indirectly in partisan politics, nor contest any election, during their tenure in office.”
The bill introduced by Kogi West lawmakers also seeks to restrict the usage of foreign currency in domestic transactions in Nigeria.
The bill proposes to include Section 20(a) in Section 20 of the CBN Act.
“20(a) Prohibition of the use of foreign cash in democratic transactions:
“(1) No person or corporate body 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 authorised 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, Senator Nwokocha, in his lead debate, said, “This bill seeks to address all anomalies that have hindered the advancement of the apex bank to handle the ailing economy of our nation.
“The thrust of this amendment is to create a people-centered 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 unauthorise financial transactions and dollarising the economy.
“This bill seeks to, 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.
“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.”
