The Central Bank of Nigeria’s (CBN) governor would no longer have the authority to choose directors or set the salaries and benefits of the governing board members, according to a motion made by the Senate on Tuesday in Abuja.
The bill, sponsored by Senator Sadiq Umar, passed second reading in the upper chamber and also included a proposal that the CBN board be in charge of annual budgets, citing that the practice is commonplace around the world.
The legislation that sought to change Central Bank of Nigeria Act No. 7 also suggested that in addition to establishing annual budgets, the new board chairman of the CBN would also be responsible for determining member salaries and allowances.
“A bill for an Act to alter the Central Bank of Nigeria’s (CBN) Act No. 7 of 2007 to permit the appointment of a person other than the governor as the chairmen of the board, deprive the board of the powers of determining and fixing salaries and allowances of its members,” the motion stated. Additionally, the bank’s annual budget will be discussed and approved, along with other related items, in 2022.
Senator Betty Apiafi from Rivers asked for a comprehensive reform to the CBN Act in her contribution, claiming that the CBN governor went above and above to run for president in the 2022 primary while still in office.
Given that the Independent National Electoral Commission (INEC) materials were anticipated to be stored in the bank, she insisted that this would not occur elsewhere in the world.
She claims that the CBN governor has increased skepticism among Nigerians and undermined their belief in the ability of the central bank to safely store key INEC materials, necessitating the need to curtail the authority of those in office.