Melvin Onwubuke
The National Assembly has made attempts with a proposal that could drive the CBN capital base to a staggering N1 trillion.
This proposal was part of a larger legislative effort summed up in a bill which recently progressed to its second reading on the floor of the Senate.
The bill titled, “Bill for an Act to Amend the CBN Act, 2007 to strengthen the Bank and for other related matters thereto, 2024 (SB.325),” is led by Senator Adetokunbo Abiru, alongside the strong support of 41 other senators, to revise various facets of the existing CBN Act, 2007, according to Nairametrics.
The main focus of the proposed changes is a substantial increase in CBN’s authorized capital, from the current N100 billion; a figure the legislators argue has been weakened as a result of the naira’s devaluation.
This financial strengthening is seen as a significant move to ensure the CBN, remains a tremendous pillar In Nigeria’s economic space.
Senator Abiru in his lead debate, emphasized the bill’s potential to empower the CBN to attain its key mandate, marking milestone, towards enhancing the integrity and stability of Nigeria’s financial system.
He said “Recapitalization of the Bank; The Bank’s current authorized capital of ₦100 billion (One Hundred Billion Naira) as stated in section 4 (1) has over the years been eroded by the devaluation of the naira.”
“The Bill proposes to amend this 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,” he added.
