Nigerian Senators Reject Bill Aimed at Reducing Central Bank’s Regulatory Powers
In a recent development, Nigerian senators have rejected a bill aimed at amending the Foreign Exchange Act of 2004, which seeks to reduce the regulatory function of the Central Bank of Nigeria (CBN) on the foreign exchange market. The bill, titled "The Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353)," was sponsored by Sani Musa, Chairman of the Senate Committee on Finance.
The proposed law aimed to repeal the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap. F34, Laws of the Federation of Nigeria, 2004, and regulate, monitor, and supervise market transactions and related matters. According to Senator Musa, the bill sought to stabilize the country’s foreign exchange market by ensuring the liberalization of foreign exchange transactions to maintain an equilibrium of the balance of international payments.
However, senators from both sides of the aisle vehemently opposed the bill, arguing that it would be counterproductive to the CBN’s efforts at stabilizing the foreign exchange market. Senators Solomon Adeola, Tokunbo Abiru, and Aliyu Wadada led the opposition, citing concerns that the bill would confuse Nigerians and undermine the CBN’s monetary policy regulations.
Senator Ibrahim Dankwambo, while opposing the bill, argued that passing such a law would confuse Nigerians, while Senator Adams Oshiomhole believed that the bill should not proceed further, as it would effectively take over the CBN’s monetary policy regulations.
Despite the opposition, Senator Godswill Akpabio, President of the Senate, urged Senator Musa to withdraw the proposed law for further consultations. However, Senator Musa declined, and Senator Akpabio subsequently called for a voice vote to decide its approval or rejection for a second reading. The majority of lawmakers voted against the bill, rejecting it.
The development comes as the Naira recorded its first appreciation against the dollar on Thursday, exchanging at N1,554.65 per dollar.
