The Nigerian Senate has given the green light to the Central Bank of Nigeria (CBN) Act Amendment Bill, propelling it to the second reading.

Spearheaded by Senator Tokunbo Abiru and supported by 41 committee members, the bill seeks pivotal revisions to the outdated CBN Act of 2007.

Senator Abiru, Chair of the Senate Committee on Banking, Insurance, and other Financial Institutions, underscored the imperative need for amending the antiquated 2007 Act.

He emphasized the call for synchronization between monetary and fiscal policies to confront challenges arising from fiscal dominance and the dynamically evolving financial landscape.

The proposed amendments introduce a Coordinating Committee for Monetary and Fiscal Policies, featuring key figures such as the Minister of Finance, Minister of Budget and Economic Planning, Minister of Industry Trade and Investment, among others.

This committee aims to establish consistent targets for policies that effectively control inflation and foster sustainable economic growth.

Noteworthy recommendations encompass a six-year single term tenure for the CBN governor and deputy governors.

External directors are slated to serve a non-renewable five-year term, with at least one deputy governor position reserved for a career staff from within the Bank.

The bill also advocates for the establishment of the office of a Chief Compliance Officer, holding the rank of a Deputy Governor, reporting directly to the Board.

This officer may be summoned to appear before the relevant committee of the National Assembly when deemed necessary.

In addressing the critical issue of Ways and Means, the bill proposes capping the advances the CBN can grant the Federal Government to 10% of average government actual revenues over the preceding three years.

Temporary loans are to be repaid within three months, with outstanding amounts at the end of the credit period recovered from the Federal Government’s FAAC Receipts.

Concurrently, the Senate Committee on Banking, Insurance, and other Financial Institutions screened four CBN director candidates: Mr. Robert Agbede, Mr. Ado Yakubu Wanka, Prof. Muritala Saba Sagaji, and Mrs. Muslimat Olanike Aliyu.

This comprehensive bill reflects a steadfast commitment to modernize the CBN’s framework, harmonize policies, and instill accountability in financial governance.