The House of Representatives has directed its committees on Banking Regulations and National Security and Intelligence to engage in discussions with the Governor of the Central Bank of Nigeria, Yemi Cardoso. This decision was made during Tuesday’s plenary session after a motion was presented by Ismaila Dabo.
In his motion, Dabo highlighted the adverse effects of the government’s foreign exchange policy, which has led to increased demand for dollars and a scarcity of the currency. He emphasized that despite the unification of Nigeria’s foreign exchange inflows in June, the country’s economy is still facing significant challenges.
“Despite the unification of Nigeria’s foreign exchange inflows, there is a high demand for foreign currency and limited access to official markets, resulting in the incentivization of black market purchases. This has caused the value of the naira to decline significantly, with the exchange rate reaching nearly N1000/$ in the parallel market. This marks the first time Nigeria has liberalized the foreign exchange market,” explained Dabo.
Showing support for the motion, Ademorin Kuye added that the situation has been further exacerbated by the requirement of dollars for domestic transactions.
“Currently, foreign airlines charge passengers in dollars, and in high-end markets like real estate, payment is also expected in dollars. This practice is criminal,” stated Kuye.
After a comprehensive debate, the House resolved that the Federal Government should implement policies and structural reforms to combat corruption and promote economic diversification. In addition, the government was urged to boost exportation, reduce importation, and enhance foreign investors’ confidence in fiscal and monetary policies.
