The House of Representatives has urged the federal government to make a fundamental shift on governance that focuses on bloated cabinet structures, wasteful expenditures, oil theft and forex speculators.
The House also asked the Central Bank of Nigeria (CBN) to address the impact of the falling naira against the dollar and other currencies on the Nigerian economy.
It particularly urged CBN to implement monetary policy adjustments to stabilise the currency, address speculative activities in the forex market, and increase the withdrawal limit of the naira to reduce the pressure on dollars and other foreign currencies.
The House also mandated its Committee on Banking Regulation to investigate the use of US Dollars and other foreign currencies as legal tender for domestic transactions in Nigeria.
The Green Chamber further urged the federal government to formulate policies and structural reforms to reduce corruption and promote economic diversification within the nation’s economy.
It equally asked the federal government to promote exportation and reduce importation by enhancing foreign investors’ confidence on its fiscal and monetary policies.
These resolutions were sequel to adoption of amendments and prayers of a motion moved by Hon. Ismaila Haruna Dabo (APC), Bauchi at plenary on Tuesday.
Moving the motion, Dabo said President Bola Tinubu through the CBN announced changes to the country’s foreign exchange market, that is, the foreign currencies can now be bought and sold at rates determined by the market and not by the apex bank.
The lawmaker noted that the President’s intention is to allow market forces to determine naira value, but the alarming exchange rate has impacted Nigeria’s economy, causing untold hardship due to increased demand for dollars and a dollar shortage.
He observed that about 90% of Nigeria’s total export earnings are from oil, which is the mainstay of the country’s economy, but changes in the price of oil around the world have a big impact on Nigeria’s foreign exchange market, which explains why the Naira has continued to depreciate.
Dabo said Nigeria’s foreign exchange inflows are lagging despite unification in June, with high demand for foreign currency and limited access to official markets incentivising black market purchases.
He lamented that the naira has lost a greater percent of its value against the dollar, falling from N778.602/$ as of September 26, 2023, and nearly N1000/$ at the parallel market, making it the first time Nigeria has liberalised the foreign exchange market.
“Worried about inflation and the cost of living, depreciating naira makes imported goods more expensive, leading to higher inflation rates. This increased cost of living disproportionately affects the vulnerable citizens, as they struggle to afford basic necessities, which are now glaring across the country.
“Also worried about the reduction in investment, as the value of the naira continues to lose value and depreciates against the dollar and other foreign currencies, foreign investors may be deterred from investing in Nigeria, fearing potential currency losses, which is capable of stunting economic growth and hindering the creation of new job opportunities for unemployed Nigerian youth.
“Aware that a weaker and depreciating Naira could increase Nigeria’s external debt servicing costs, potentially reducing government spending on critical sectors like healthcare and education,” Dabo argued.
He stated that the CBN frequently uses its foreign reserves to stabilise the naira, but this can deplete its reserves, making the country vulnerable to economic shocks.
Adopting the motion, the House urged the federal government to promote exportation and reduce importation by enhancing foreign investors’ confidence in its fiscal and monetary policies.
It also mandated the Committees on Banking Regulations and National Security and Intelligence to interface with the CBN with the purpose of initiating compliance strategies.
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