Lawmakers advance a bold CBN Oversight Reform bill seeking stronger governance, accountability and monetary policy transparency.

The House of Representatives on Thursday opened legislative consideration of a sweeping amendment to the Central Bank of Nigeria Act, with House Leader Julius Ihonvbere and Jesse Onakalausi of Lagos sponsoring a bill aimed at tightening CBN oversight, strengthening governance and improving transparency.

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The proposal, which centres on CBN Oversight Reform, passed second reading without resistance.

Presenting the bill, Onakalausi said recent economic turbulence and policy controversies had revealed structural weaknesses in the apex bank’s legal framework.

He cited governance lapses, foreign exchange distortions and inconsistent monetary actions as developments that made reform both urgent and unavoidable.

Onakalausi said the current arrangement, in which the CBN Governor also chairs the Board, concentrates excessive authority in one office and undermines institutional balance.

He argued that in most jurisdictions professional oversight is separated from day-to-day management, providing a stronger system of checks and balances.

The amendment therefore proposes a professional board chairman distinct from the governor.

The bill includes provisions to enhance the Monetary Policy Committee by increasing its independence and aligning its structure with those used in the United Kingdom, South Africa, Brazil and the European Union.

It also introduces tighter controls on Ways and Means financing, placing a firm cap of 10 per cent of the previous year’s actual revenue to prevent excessive deficit funding.

Additional reforms focus on protecting the naira and improving transparency in foreign exchange management.

The draft legislation introduces a 90-day notice period and mandatory impact assessments before major monetary actions such as currency redesign or demonetisation, a safeguard designed to prevent abrupt policy shocks.

Onakalausi stressed that central bank autonomy must coexist with robust accountability. The bill requires the CBN to submit annual audited accounts within two months, deliver quarterly reports to the National Assembly, and maintain a public online repository of all official publications.

Further amendments provide for a single six-year term for the governor and deputy governors, with two deputy governors to be appointed from internal directors to promote stability and reduce external political interference.

The restructured Monetary Policy Committee will include four external experts who are independent and barred from holding public office.

If enacted, the legislation would represent one of the most significant revisions to the CBN Act since 1991, with far-reaching implications for governance, monetary policy formulation and Nigeria’s broader financial system.