By 
Nigeria’s House of Representatives has begun legislative action to tighten oversight and improve transparency at the Central Bank of Nigeria (CBN), following the second reading of a bill proposing sweeping amendments to the CBN Act, 1991.
The bill, jointly sponsored by House Leader Prof. Julius Ihonvbere and Lagos lawmaker Jesse Onakalausi, passed its second reading with unanimous support during plenary. The proposed law seeks to modernise the apex bank’s governance structure, strengthen checks and balances, and enhance professional oversight of its operations.
Formally titled “A Bill for an Act to Amend the Central Bank of Nigeria Act, 1991, to allow for proper day-to-day operations, professional oversight and enhance checks and balances, and for other matters connected thereto, 2025,” the legislation responds to long-standing concerns around governance gaps at the CBN. These concerns intensified following controversies linked to monetary policy decisions, foreign exchange management, and the 2022 currency redesign.
For years, analysts have criticised Nigeria’s central banking framework for concentrating operational and oversight powers in the office of the CBN Governor. This structure, they argue, has encouraged policy opacity, discretionary foreign exchange management, and weak controls over government borrowing through Ways and Means advances.
Presenting the bill, Onakalausi said the amendments are driven by the need to reinforce governance, autonomy, accountability, and transparency at the apex bank, particularly in light of evolving domestic and global economic conditions. He stressed the central bank’s critical role in maintaining financial stability, price control, and public confidence in the economy, while noting that recent events have exposed structural weaknesses in the existing law.
A central feature of the bill is the separation of executive and oversight roles within the CBN. Under the proposal, the Governor would focus on day-to-day management, while a professionally qualified, independent Board Chairman would provide oversight. The current law combines both roles, a setup the bill describes as creating an unhealthy concentration of power and potential conflicts of interest.
The legislation also aims to strengthen monetary policy independence and align Nigeria’s regulatory framework with international best practices. Proposed changes include restructuring the Monetary Policy Committee (MPC) to improve expertise, independence, and transparency, drawing on models used in jurisdictions such as the UK, South Africa, the EU, and Brazil.
Addressing fiscal discipline, the bill introduces stricter limits on Ways and Means advances, capping such lending at 10% of the previous year’s actual government revenue. Lawmakers argue this would curb inflationary deficit financing and reduce the risk of fiscal abuse.
Further provisions focus on protecting the naira and improving transparency in foreign exchange management. The bill mandates a 90-day notice period, impact assessments, and compulsory briefings to the National Assembly before major policy actions such as currency redesigns or demonetisation.
While affirming the importance of central bank independence, the sponsors emphasised that autonomy must be balanced with accountability. Proposed reporting requirements would compel the CBN to submit audited annual accounts within two months, publish quarterly monetary policy reports, and maintain a publicly accessible website hosting all official publications.
Other notable amendments include limiting the Governor and Deputy Governors to a single six-year term, requiring at least two Deputy Governors to be appointed from within the bank to ensure institutional continuity, and redefining the role of the Board Chairman as a separate, professionally qualified position.
If enacted, the bill would represent one of the most significant reforms of the CBN Act in decades, with far-reaching implications for monetary policy governance, regulatory oversight, and confidence in Nigeria’s financial system.
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