Senate Advances Bill to Keep CBN Governors out of Partisan Politics and Prohibit Use of Foreign Currency in Local Transactions
Two bills related to the Central Bank of Nigeria (CBN) have passed the second reading in the Nigerian Senate.
These bills aim to prohibit a serving Governor of the CBN from participating in partisan politics and seek to reposition the bank for greater efficiency.
The move comes after the immediate past CBN governor, Godwin Emefiele, attempted to contest the 2023 presidential primaries of the All Progressives Congress (APC) while still in office, which sparked controversy and raised questions about the participation of public servants in elective office.
The first bill, titled “Central Bank of Nigeria (Establishment) (Amendment) Bill 2023,” is sponsored by Senator Steve Karimi from Kogi West.
The proposed legislation is intended to amend the CBN Act to enhance accountability and transparency in the operation of the apex bank.
It also seeks to prohibit the use of foreign currencies in local transactions within Nigeria.
The second bill, titled “A Bill to Amend the Central Bank of Nigeria Act 2007, and for Matters Connected Therewith, 2023,” is sponsored by Senator Darlington Nwokocha of the Labour Party, representing Abia Central.
Key provisions of the bills include a prohibition on the Governor and Deputy Governor of the CBN from participating directly or indirectly in partisan politics or contesting any election during their tenure in office.
A ban on the use of foreign currency as a means of exchange for goods, services, and transactions in various business settings, such as markets, supermarkets, hotels, restaurants, airports, and more, except through authorised financial institutions like banks and licenced Bureau De Change.
Pricing goods and services in a currency other than the Nigerian Naira and Kobo is also prohibited.
Penalties for violating these provisions include fines and imprisonment for individuals or corporate entities that engage in foreign currency transactions or advertise their goods or services in foreign currency.
The bills are seen as addressing issues related to the role and responsibilities of the CBN, particularly in its position as Nigeria’s central bank.
Advocates argue that these amendments are necessary for ensuring the effective and apolitical functioning of the CBN to support the country’s economic stability and development.
The bills’ passage to the next legislative stage suggests that the Nigerian Senate is taking the issue seriously and will continue to deliberate on the proposed amendments.
Source: PUNCH
