The House of Representatives at plenary on Wednesday voted against a motion, seeking to the stability of the foreign exchange rate.
The motion was sponsored by Hon. Beni Lar (PDP) who recalled that the Central Bank of Nigeria (CBN) had on June 14, announced the unification of all segments of the foreign exchange market but as at July 17, the US dollar was trading at N815 to $1.
The House also urged the Central Bank of Nigeria (CBN) to restore back the operational licenses hitherto revoked license to 47 Microfinance Banks across the country, pending the conclusion of investigation.
Also, the House invited the leadership of international airlines and other stakeholders in the aviation sector to explain the price hikes in ticketing fares and proffer lasting solutions.
Continuing, Lar said if this is not reversed, $1 could be exchanged for N1,000 by December 2023, and the current economic situation may trigger an inflationary spiral that may throw Nigeria into economic recession and depression.
She argued that: “In July 1980, the exchange rate was $1 to 0.80Kobo, in July 2022, the rate was $1 to N670, while in July 2023, the exchange rate is now $1 to N815,shortly after the new administration had promised during the campaigns and upon inauguration to stabilise Nigeria’s exchange rate at N200 to $1.
“In the 1980s, most of the food and products consumed were grown or produced in Nigeria, today the Nigerian economy is mainly dependent on importation and there lies the source of the terrible exchange rate we are now experiencing.”
Lar noted that the importation of vehicles and other commodities has dropped, since the floating of the Naira by the single exchange rate.
“The impact of the unified exchange rates has made Nigerian Students abroad to suffer tuition fees increment by over 60 per cent making the money in their bank accounts insufficient to pay school fees due to devaluation of the Naira.
“The Naira has been on a rapid decline against the US dollar, Euro and Pounds Sterling, thus leading to hike in prices of goods and services, thereby worsening the inflationary situation and the cost of doing business in Nigeria.
“The high prices of goods and services are taking a huge toll on average Nigerians, making lives unbearable,” she argued further.
In her prayers, Lar urged the House call on the federal government to take necessary steps to stabilise the Naira, just as she also prayed that the House mandate its Committee on Banking and Currency (when constituted) to ensure compliance and report back within three weeks for further legislative action.
But speaking against the motion, some members said it was meant to tinker with the government recent policy of floating the Naira, arguing that the stabilisation of the currency was a function of market forces.
Those who spoke against the motion included Hon. Lawan Shetima Ali from Borno State, Hon. Leke Abejide from Kogi State and Hon. Ademorin Kuye from Lagos State.
In his debate, Shetima said he never heard Tinubu during the electioneering campaigns promised to bring exchange rate one dollar to N200.
He said “I must add this. I have never heard of the President promising to make the dollar equal to N200. The President took the bull by the horn to remove subsidy. We must commend his efforts not by a way of challenge. We need to support him. We should be fair to this current government.
“It’s too early to begin to to judge the performance of the government with regards to dollar. This government inherited insecurity. Of people are not encouraged to come and invest, there is no way it will grow. We should give this government time before assessing them”.
On his part, Abejide said “This exchange rate cannot be done by fiat but market forces. It had to be done by production and not importation. I believe the government is in the right direction”.
In the same vein, Kuye said: “I find it difficult to sit down and support the disjointed nature of the motion. Nigeria had done lowest inflation rates”.
The motion could not scale through when put to voice vote by the deputy speaker, Benjamin Kalu who presided over the plenary.
Meanwhile, a motion sponsored by Hon. James Shuaibu Barka from Adamawa at plenary on Wednesday seeking the return of operational licences to 47 Microfinance Banks.
Moving the motion, Barka noted that on May 22, 2023, the then Governor of CBN, Godwin Emefiele revoked the operational license of 47 Microfinance Banks across the country, including Biyama Microfinance Bank Ltd, Hong Local Government Area in Adamawa State.
He said: “The reasons cited in the communication include that the banks were either inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six months in contravention of the Banks & Other Financial Institution Act (BOFIA) 2020.
“The closure of Biyama Microfinance Bank, which is the only community bank in the Hong Local Government Area, has caused undue hardship to the people who depend on the banking and financial services offered by the bank for their small and medium enterprises.”
He expressed worry that closing down the only financial institution in a place where the people go through so much hardship to earn stipends to deposit, or to get small loans to run small businesses for survival would only frustrate them further and may push them into crime in order to survive.
The lawmaker said after the recapitalisation of the Bank to the required N50 million share capital, it never ceased operating in line with BOFlA and has been making all required reports and returns;
He lamented that if the situation is not urgently resolved, the people will resort to keeping their money at home, which makes them easy prey for armed robbery and burglary.
The house also invited the leadership of international airlines and other stakeholders in the aviation sector to explain the price hikes in ticketing fares and proffer lasting solutions.
This was sequel to a motion of urgent public importance, on the urgent need to address the high rise in international air fares moved by Hon.Femi Bamisile.
Bamisile called on the House Committee on Legislative Compliance when constituted to effect the resolutions of the prayers. An amendment was proposed that the prayers of the motion should also take care of the price of local air fares.
Hon. Adedayo Adesola proposed an amendment calling for the payment of Nigeria’s indebtedness to international airlines so that the normal cheap inventories can be reintroduced and hence reduce the price of airfares. The motion was voted on and adopted as amended.
Meanwhile, the House adopted a motion of urgent public importance on the fuel tanker explosion in Ondo State which led to the death of 30 persons.
The sponsor of the motion, Hon. Ayodele Festus moved a motion while leading the debate bemoaned the fact that the explosion claimed over 30 lives.
He stressed that the illegal parking of fuel tanker drivers has continued to lead to such unwarranted loss of lives.
Festus called on the National Emergency Management Agency (NEMA) as well as the Federal Ministry of Humanitarian Affairs and Disaster Preparedness to provide relief to the victims.
He further called for the constitution of an Ad-Hoc Committee to ensure compliance, and that the Nigeria Police should clear all such illegal parking of fuel laden trucks by the road sides.
The motion was voted on, adopted and referred to the relevant Ad-Hoc Committee to be constituted.
