In a significant development, the Nigerian Senate has passed two separate bills during their second reading, aiming to enhance transparency in the operations of the Central Bank of Nigeria (CBN).
The first bill, titled the “Central Bank of Nigeria (Establishment Amendment) Bill 2023,” was sponsored by Senator Steve Karimi. This legislation seeks to prevent the person occupying the office of the Central Bank Governor from participating in partisan politics. If passed, this bill would introduce greater accountability and transparency in the workings of the apex bank.
Moreover, Senator Karimi’s proposed amendments extend to prohibiting the use of foreign currency in local transactions within Nigeria. He specifically targets section 9(2) of the CBN Act, which currently states that the Governor and Deputy Governor of the Central Bank should not participate directly or indirectly in partisan politics during their tenure.
The proposed amendment, known as section 20(A), aims to address the use of foreign currency in democratic transactions. It outlines that no person or corporate body can use foreign currency for the exchange of goods, services, or transactions in various places of business, such as markets, supermarkets, hotels, restaurants, and airports in Nigeria. The bill only allows licensed banks, Bureau De Change, and authorized financial institutions by the Central Bank of Nigeria to trade and use foreign currencies.
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Furthermore, the bill stipulates penalties for contravening these rules. Individuals could face a fine of N250,000 or a maximum prison term of six months, or both. Corporate entities, on the other hand, maybe fined N1,000,000, and their officers or directors who authorized or undertook the transaction may face a conviction of three months.
The second bill, titled “A Bill to amend the Central Bank of Nigeria Act 2007, and for matters connected therewith 2023,” was sponsored by Senator Darlington Nwokocha. This bill also seeks amendments to enhance transparency in the operations of the CBN.
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