Bill Aims to Prohibit Local FX: The Nigerian Senate has passed a bill proposing significant amendments to the Central Bank of Nigeria Act, with the aim of ensuring the non-partisan involvement of the bank’s key officials in political activities and prohibiting the use of foreign currency for local transactions within the country. The bill, sponsored by Senator Steve Karimi and Senator Darlington Nwokocha, received considerable support during its second reading.
Senator Karimi’s proposed amendment to the CBN Act aims to establish a clear restriction on the involvement of the Governor and Deputy Governor of the central bank in partisan politics during their tenure. Moreover, the bill seeks to curb the utilization of foreign currency in domestic transactions across various business sectors, including markets, supermarkets, hotels, and restaurants. The proposal outlines penalties for individuals and corporate entities found contravening these regulations, including fines and imprisonment.
In a separate move, Senator Nwokocha highlighted the necessity of creating a people-centric Central Bank that prioritizes price and financial system stability and fosters sustainable economic growth. The bill aims to overhaul the apex bank’s governance structure, reinforce financial oversight, and eliminate the practice of dollarizing the economy. Senator Nwokocha emphasized the importance of repositioning the CBN to effectively carry out its fundamental objectives and establish itself as a politically neutral entity committed to sound monetary policies, robust banking regulation, and effective currency management.
The proposed amendment Bill Aims to Prohibit Local FX underscores the Senate’s dedication to enhancing the integrity and transparency of the country’s financial system and fostering a more stable economic environment. As the bill progresses, it is expected to play a crucial role in reshaping the operations and mandate of the Central Bank of Nigeria, providing a solid framework for its future endeavors in the nation’s economic landscape.