A bill seeking to introduce a single, non renewable six year tenure for the governor and deputy governors of the Central Bank of Nigeria CBN has passed second reading in the House of Representatives.
The proposed amendment challenges existing provisions of the CBN Act 2007, which currently allows 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 wide ranging reforms aimed at strengthening the apex bank’s governance framework and aligning its operations with international best practices. The legislation also proposes unifying Nigeria’s exchange rate system and banning the use of foreign currencies for domestic transactions except through authorised channels.
The bill is jointly sponsored by Jesse Okey Joe Onuakalusi, who represents Oshodi Isolo federal constituency, and the House Majority Leader, Julius Ihonvbere. According to the sponsors, the objective is to modernise the Central Bank, improve oversight, and enhance corporate governance.
Among its major provisions is the separation of the roles of CBN governor and board chairman to prevent excessive concentration of power and ensure professional oversight. The bill also seeks to cap Ways and Means advances at 10 percent of the previous year’s actual revenue, a move intended to curb inflationary financing and fiscal abuse.
In addition, the draft law requires that before any currency redesign or demonetisation exercise, the CBN governor must give 90 days’ notice, present an impact assessment, and brief the National Assembly. It also proposes reforms to the Monetary Policy Committee by introducing independent external experts and strengthening financial stability oversight through macro prudential tools and regular stress testing.
The push for a single term tenure follows controversies surrounding the administration of former CBN governor Godwin Emefiele. During his time in office, he was accused of harbouring presidential ambitions, while the bank’s controversial naira redesign policy ahead of the general election led to widespread cash shortages that disrupted businesses and daily life across the country.
Opening the debate during plenary, Onuakalusi described the proposed changes as “structural and forward-looking reforms” aimed at protecting the economy, restoring confidence in monetary policy, and strengthening accountability.
He said the bill explicitly 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,” he said. Onuakalusi added that the institution must not operate under outdated rules.
“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 the 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.
