•Pass bill to separate positions of board chairman from governor
BY JAMES AKINOLA
A bill to create the position of Chairman of the Board of the Central Bank of Nigeria, separate from the position of the governor, scaled second reading in the House of Representatives yesterday.
Sponsor of the bill, Francis Waive, who spoke at plenary in Abuja, said there was need to amend Section 6 to separate both positions, so the governor could be checked and not have all the powers.
The bill also proposed that in the event of the need for currency swap or naira redesign, as witnessed from late last year to early this year, the bank would be directed to call in its notes or coins, subject to a notice of not less than one year.
”This amendment reinforces the need for adequate time for the notice of change of naira notes before exercising the power to call in the old notes,” Waive said.
He said the proposed amendment to Section 6 of the Central Bank of Nigeria Act represented a significant step toward strengthening the governance structure of the CBN.
He said the amendment, which sought the differentiation between the Chairman of the Board and the Governor, introduced a level of independence, oversight, and accountability that is essential for the effective functioning of the CBN.
The amendment to Section 6, he said, aligned with international best practices and demonstrated a commitment to transparent and prudent monetary policy management.
“The proposed amendment introduces a crucial change in the composition of the CBN’s Board of Directors as outlined in Section 6 of the Principal Act. The proposed amendment adds a new paragraph, Section 6(2)(a), which mandates that the Chairman of the Board shall be a Former Governor of the CBN, a former Chairman of the Bank, or a former Managing Director of a bank.
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