• Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
Monday, June 2, 2025
  • Login
No Result
View All Result
NEWSLETTER
Elanza News
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
No Result
View All Result
Elanza News
Home Business

In New CBN Law, Senate Pegs 6 Years-single Term For Governor

Ojimaojo Abubakar by Ojimaojo Abubakar
February 27, 2024
in Business
0
0
SHARES
12
VIEWS
FacebookTwitterWhatsappEmailTelegram

In a new law been propose, the National Assembly is seeking to make the Central Bank of Nigeria (CBN) Governor’s tenure six year of one term.

The amendment of the CBN Act 2007, will foreclose a renewable term of the head of the apex bank and make it a single term of six years.

The national assembly through the Senate is also proposing N1 Trillion recapitalization for commercial banks which presently stands at N100 billion.

RelatedPosts

10 Stockbroking Firms Trade N2.14trn Worth of Stock in Five Months

Currency in Circulation Hits N5.01trn as Cash Outside Banks Declines

APM Terminals Apapa, GIVO Launch Recycling Hub to Tackle Plastic Waste

As the Senate moves for sweeping reforms in the organisation, administration and function of CBN through an amendment bill read for second reading in plenary on Tuesday, its committee on Banking, Insurance and other Financial Institutions, screened nominees for board of Directors of the Bank.

Proposal for six year single term for CBN Governor, Deputy Governors and members of board of Directors, was contained in a bill seeking for amendment of CBN Act 2007 and sponsored by Adetokunbo Abiru (APC Lagos East) in his capacity as Chairman, Senate Committee on Banking.

Abiru in his lead debate on the bill co – sponsored by 41 other members of the committee , said six years single term for CBN Governor , Deputy Governors and board of Directors , said it was geared towards reducing political influence on them .

“The Bill proposes to amend this provision to provide a single non-renewal term of 6 years for the Governor and the Deputy Governors.

ALSO READ:  Nigerian banks resilient amid significant external, internal pressures – CBN

“This is the practice adopted by many independent Banks such as the US Federal Reserve and the European Central Bank where their Chief Executive Officers serve only one non-renewable term.

” Empirical evidence shows that a single term for the members of the Executive and Board members of central banks helps to reduce political influence on monetary policy decisions and the time inconsistency problem associated with non-independent central banks,” he said.

On N1 Trillion recapitalization, Abiru in the bill said the proposal seeks to provide that the paid-up capital of the Bank shall be 1 Trillion Naira and may be increased from time to time by such amount as the Government may approve either by way of transfers from the General Reserve Fund or by such other means as the Government, in consultation with the Board, may approve.

The bill also seeks for creation of Coordinating Committee for Monetary and Fiscal Policies since the extant act made no provision for such.

He said: “The current Act made no provision for coordination of monetary and fiscal policies which is the reason that monetary policies of the Bank often diverge from fiscal policies to the detriment of the economy.

“To this end, the Bill introduces for the purpose of coordination of the monetary, fiscal and trade policies, a Coordinating Committee for Monetary and Fiscal Policies.

“The functions of the Committee shall include: setting internally consistent targets of monetary and fiscal policies that are conducive to controlling inflation and promoting financial conditions for sustainable economic growth; Applying caps to any fiscal deficit at a level that can be financed without having recourse to direct monetary financing from the Bank etc.

ALSO READ:  ‘Love Money Too Much, Ponzi Schemes Will Love You,’ EFCC Cautions Nigerians

It also seeks to regulate the issuance of Ways and Means by CBN to the Federal Government .

Specifically as proposed in the bill, while the current CBN Act, empowers the CBN to grant temporary advances to the Federal Government to finance unexpected shortfall in budget revenue without stated time frame , the proposed law wants the advance not to exceed five per cent of the previous year’s actual revenue of the Federal Government and it is to be paid back at the end of the financial year in which it was granted.

“In order to firm up this provision and prevent a repeat of the recent experience in which the Bank’s Ways and Means have fueled inflation and significantly distorted economic management, the Bill proposes the following: any such direct advance to the Government should not exceed 10% of average government actual revenues during the preceding three years.

“For the purpose of determining the government’s actual government revenue, proceeds from asset sales shall be excluded to avoid capturing revenues from exceptional items.

“Such temporary loans should be repaid in full within three months from the date it is made available. This is consistent with global practice.

“The current provision which stipulates before the end of the fiscal year is prone to abuse as it creates a window for the government to obtain overdrafts from the Bank in January and wait until December to make repayment.

“In order to minimize default risk, any sum which becomes outstanding at the end of the expiration of the credit period should be held against and recovered from the proportion of the Federal Government’s FAAC Receipts”, he explained.

ALSO READ:  Army Equips 77 Youths With Various Skills In Nasarawa

Members of Board of CBN Directors screened on Tuesday were Mr. Robert Agbede, Mr. Ado Yakubu Wanka and Mrs Muslimat Olanike Aliyu.

Tags: CBNSenates
Ojimaojo Abubakar

Ojimaojo Abubakar

Abubakar Ojimaojo is a graduate of Mass Communication, political and football analyst currently work at elanzanews.ng as Editor. He pride himself as skilled wordsmith with a passion for delving into contemporary political issues on both national and international scale.

Related Posts

Market Highlights: ₦63.79 Billion in Trades on the NGX This Week

10 Stockbroking Firms Trade N2.14trn Worth of Stock in Five Months

by Nathaniel Irobi
June 2, 2025
0

A total of 10 stockbroking firms traded N2.14 trillion worth of stocks between January and May of 2025 as the...

2025 Hajj: CBN approves cash-based BTA for pilgrims

Currency in Circulation Hits N5.01trn as Cash Outside Banks Declines

by Nathaniel Irobi
June 2, 2025
0

Currency in circulation (CIC) in Nigeria climbed to N5.015 trillion in April 2025, up marginally from N5.003 trillion in March,...

APM Terminals Apapa, GIVO Launch Recycling Hub to Tackle Plastic Waste

APM Terminals Apapa, GIVO Launch Recycling Hub to Tackle Plastic Waste

by Nathaniel Irobi
June 2, 2025
0

In a strategic move to combat plastic pollution and foster environmental sustainability in Apapa, APM Terminals Apapa, Nigeria’s largest container...

Recommended

Kaduna: PDP Asks INEC To Declare Seats Of 4 Defectors Vacant

We won’t bow to FG’s intimidation – PDP governors

5 days ago
Zamfara Islamic Scholars Decry Moral Decline At Govt House

Zamfara Islamic Scholars Decry Moral Decline At Govt House

3 days ago

Popular News

  • Arewa group hails Tinubu’s inclusive appointments

    NURTW President Hails Tinubu’s Reforms, Urges Greater Support For Transport Sector

    0 shares
    Share 0 Tweet 0
  • Environment Minister’s Scholarship Beneficiary Tops 2025 UTME In Northern Nigeria With 345 Score

    0 shares
    Share 0 Tweet 0
  • Abuja Estate Firm Announces Customer Loyalty Rewards

    0 shares
    Share 0 Tweet 0
  • NAHCON Officials Grumble in Saudi Arabia Over Unpaid Allowances

    0 shares
    Share 0 Tweet 0
  • Christian Group Seeks Reversal of NBAIS Certificate Recognition

    0 shares
    Share 0 Tweet 0

Connect with us

Facebook Instagram Twitter Youtube
Elanza logo

Elanza News is your NO 1 online platform for all news update.
#SayNoToFakeNews
Contact Us

Category

  • Arts & Literature (25)
  • Business (719)
  • Education (213)
  • Entertainment (307)
  • Health (187)
  • National (2,063)
  • News (7,733)
  • Opinion (283)
  • Politics (1,564)
  • Science (15)
  • Security (403)
  • Sports (414)

Newsletter

© 2023 Elanza News - The No 1 online news platform

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Politics
  • Business
  • Science
  • National
  • Entertainment
  • Sports
  • Health

© 2023 Elanza News - The No 1 online news platform