Recall that the former lawmaker who represented Abia Central Senatorial District, Senator Darlington Nwokocha, had before he was sacked by an Appeal Court in 2023, championed the CBN Act amendment.
The National Assembly lawmakers have moved to amend the Central Bank of Nigeria Act, 2007 in order to stop the governor of the apex bank and its top officials from participating in partisan politics.
Recall that the former lawmaker who represented Abia Central Senatorial District, Senator Darlington Nwokocha, had before he was sacked by an Appeal Court in 2023, championed the CBN Act amendment.
The amendment seeks to prohibit the chairman, governor and deputy governors of the apex bank from taking part in political activities or becoming members of any political party for three years after service.
Recall that in the 2023 general elections, the embattled former CBN governor, Godwin Emefiele, was one of the presidential aspirants on the platform of the ruling of the All Progressives Congress (APC).
Section 8 (amended) of the CBN Act, 2007 (Amendment) Bill 2023 stated that “The Governor and Deputy-Governors shall be persons of recognised financial experience and shall be appointed by the President, subject to confirmation by the Senate on such terms and conditions as may be set out in their respective letters of appointment.
“The Chairman shall also be appointed by the President. The Chairman, Governor and Deputy Governors shall not engage in or be a member of any political party until three (3) years after disengaging from office.”
According to the bill, the CBN top executives made up of the chairman, governor, and deputy governors, shall initially be appointed for a five-year term.
The bill however stated that they might be reappointed for one additional term not exceeding five years.
The Punch reports that a transitional clause of the CBN Act stipulates varying terms for the initial deputy governors to facilitate a staggered leadership transition, with two appointed for three years and two for four years.
The bill stipulates that “The Chairman, Governor and Deputy Governors shall be appointed in the first instance for a term of five years and shall each be eligible for reappointment for another term not exceeding five years and no more:
“Provided that, of the first five deputy governors to be so appointed, two shall in the first instance be appointed for three years and two shall in the first instance be appointed for four years.”
The proposed law further seeks to promote accountability mechanisms of the CBN Governor by mandating semi-annual reports to the parliament.
The bill created a new Board of Directors for the bankers’ bank, aimed at injecting a new range of expertise and ensuring robust oversight, stating that “There shall be for the Bank a Board of Directors (in this Act referred to as “the Board”) which shall be responsible for the policy and general administration of the affairs and business of the Bank.
“The Board shall consist of (a) Chairman; who shall be a renowned professional in Accounting, Finance or Economics that has served as a Chief Executive of a regulatory agency in Nigeria and has deep insight of the operations of the Central Bank of Nigeria in the course of his regulatory functions.
“(b) the Governor; (c) Five Deputy Governors (of which one shall be appointed from each region other than the region where the Governor comes from); (d) the Permanent Secretary, Federal Ministry of Finance; (e) five non-executive Directors; and (f) Accountant-General of the Federation.
“The Board shall, from time to time (a) keep the President informed of the affairs of the Bank, including a report on its budget; and (b) make a formal report and presentation on the activities of the Bank and the performance of the economy to the relevant Committees of the National Assembly.”