The bill was sponsored by Senator Sadiq Suleiman Umar, who represents Kwara North Senatorial District.
The Nigerian Senate has passed a bill to reduce the power of the governor of the Central Bank of Nigeria, CBN.
The bill has scaled first reading and moved to the second reading stage.
The bill was sponsored by Senator Sadiq Suleiman Umar, who represents Kwara North Senatorial District.
The lawmaker requested an amendment to the Central Bank of Nigeria (CBN) Act No. 7 to enable the appointment of a person other than the Governor (of CBN) as the chairman of the Board, among other things.
This was made known in a statement on Tuesday signed by Mohammed Isa, Special Assistant (Media) to the President of the Senate, which was made available to SaharaReporters.
The statement reads: “The Senate on Tuesday passed for second reading a bill which seeks to amend the Central Bank of Nigeria Act of 2007.
“The bill which is being sponsored by Senator Sadiq Suleiman Umar (Kwara North) is to 'enable the appointment of a person other than the Governor (of CBN) as the chairman of the Board.
“Leading the debate, Senator Umar said the bill also seeks to 'divest the board of the powers of determining and fixing salaries and allowances of its members and considering and approving the annual budget of the Bank which lie solely with the National Assembly'.
“The proposed legislation, according to the Senator, would 'close the legal and administrative gaps that currently exist in the CBN and entrench good practices to allow proper oversight of the affairs of the bank for a more comprehensive legislation that will bring it in conformity with related laws and practices in Nigeria'.
“Umar said the bill when passed would address the need for an enduring legal framework that would reposition CBN to be at par with other apex banks around the world.
“Lending their support to the bill, Senators Yahaya Abdullahi (PDP-Kebbi), Betty Afiapi and Orji Kalu said the bill was necessary considering the alleged involvement of CBN Governor in the partisan politics during the recently concluded primary elections of political parties.
“Some senators including the Deputy Senate President Ovie Omo-Agege, Senators Enyinnaya Abaribe and James Manager were opposed to the bill and demanded the sponsor to provide enough justifications to the amendment being sought.
“The Senate President, Ahmad Lawan urged his colleagues to treat the bill on its merit rather than the perceived involvement of the CBN governor in partisan politics.
"I will urge us to divorce the alleged contest of the CBN Governor from this bill. Let us look at the bill on its merits," Lawan said.
“After a voice vote in favour of the bill, the Senate President referred it to the Senate Committee on banking, insurance and other non-financial institutions for further legislative scrutiny.”
The CBN governor, Godwin Emefiele, had sought to contest for an elective office, in his case, the office of the Nigerian President, while still in office as the governor of the apex bank.