Senate alters CBN Act to bar governor, deputies from politics

The Senate yesterday considered two bills seeking to ban the governor of the Central Bank of Nigeria (CBN) and deputy governors of the apex bank from participating in politics. The two bills passed a second reading during plenary at the upper chamber.

The situation ignited negative reactions from the public, with many Nigerians and groups calling for Emefiele’s resignation or sack by the then President, Muhammadu Buhari.

According to Section 9 of the CBN Act, 2007, the apex bank governor must not venture into any other vocation while in office and must resign in writing to the President if he nurses such intention.

Despite the outcry, Emefiele maintained his position as the CBN governor until Buhari completed his tenure and handed over to his successor, President Bola Tinubu, in May.

Coming on board, Tinubu embarked on reforms in the financial sector by suspending Emefiele from office as well as prosecuting him in court.

At plenary yesterday, the Senate passed the two bills after the consideration of similar bills sponsored by Sunday Karimi (APC, Kogi) and Darlington Nwokocha (LP, Abia).

During the debates, the lawmakers proposed that Section 9 be further amended to insulate the CBN governor and deputies from participating in politics while in service.

Both senators equally proposed that the Auditor-General of the Federation, Chairmen of the Federal Inland Revenue Service (FIRS) and Chartered Institute of Bankers in Nigeria (CIBN) be represented on the board of the CBN.

Senator Adams Oshiomhole (APC, Edo), however, opposed the second reading of the bill, arguing that the case of Emefiele, which was the reference case, was a consequence of the absence of governance and the will to enforce the extant laws.

Explaining the motivation for his bill, Karimi said the piece of legislation would, if passed, lead to greater accountability and transparency in the operations of the apex bank.

He also proposed an amendment to Section 20 of the CBN Act, with the insertion of Section 20 (A) immediately after the existing section 20, before the existing section 21.

The proposed amendment reads: “20(A) Prohibition of the use of foreign currency in democratic transactions: 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 authorised by the CBN to trade, deal and use such currency and no individual or business entity in Nigeria shall advertise, denominate or price its goods or services in any currency other than the Nigerian Naira and Kobo.

He also said his proposed amendment, if passed, would prohibit the use of foreign currency in local transactions in Nigeria.

The Deputy Senate President, Jibrin Barau, who presided yesterday, therefore, gave the Senate Committee on Banking and Finance two weeks to report back on the CBN Amendment Bill.

INDICATIONS emerged yesterday that President Tinubu will present the proposed N26.1 trillion 2024 budget estimates to a joint session of the National Assembly in three weeks.

Ahead of the presentation, the Senate, through its Committee on Appropriations, has summoned the Minister of Finance, Wale Edun; and his counterpart on Budget and Economic Planning, Atiku Bagudu, to appear before it next Wednesday for explanations.

Chairman of the Committee, Senator Solomon Olamilekan Adeola (APC, Ogun), disclosed to journalists that President Tinubu would forward the 2024 – 2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to both chambers of the National Assembly next week for scrutiny and approval.