In a significant move aimed at bolstering the operational framework of the Central Bank of Nigeria (CBN), the Nigerian Senate has taken strides to advance a pivotal amendment bill. Spearheaded by Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, the bill seeks to amend the existing CBN Act of 2007.
The deliberation marked a crucial step forward in the legislative process, following the bill’s initial introduction on January 30th, 2024. Notably, the bill garnered substantial support from forty-one committee members, reflecting a consensus among Senate stakeholders regarding the imperative need for regulatory reforms within the financial sector.
Senator Abiru, drawing upon his extensive experience as a former bank Chief Executive, underscored the urgency of updating the CBN Act to align with contemporary challenges and evolving industry dynamics. He emphasized that the current legislative framework, unchanged for over 16 years, fails to adequately address the complex issues confronting the apex bank amid shifting monetary policy landscapes and fiscal imperatives.
Key provisions outlined in the bill include the establishment of a Coordinating Committee for Monetary and Fiscal Policies, aimed at harmonizing policy objectives to effectively manage inflation and promote sustainable economic growth. Additionally, the bill advocates for a six-year single term tenure for both the CBN governor and deputy governors, alongside provisions to elevate internal talent to key leadership positions within the Bank.
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Moreover, the proposed legislation calls for the creation of a dedicated office of a Chief Compliance Officer within the CBN, tasked with enforcing regulatory standards and enhancing institutional accountability. Stringent measures are also envisaged to govern the granting of advances to the Federal Government, with strict caps on loan amounts and stringent repayment timelines.
Concurrently, the Senate Committee on Banking, Insurance, and other Financial Institutions conducted rigorous screenings for four directorial positions within the CBN. Notable nominees include Mr. Robert Agbede, Mr. Ado Yakubu Wanka, Prof. Muritala Saba Sagaji, and Mrs. Muslimat Olanike Aliyu, reflecting the Senate’s commitment to ensuring robust leadership and oversight functions within the apex bank.
The developments underscore the Senate’s proactive stance towards regulatory reforms, as it seeks to fortify the institutional framework of the CBN and enhance financial stability in Nigeria.
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