The House of Representatives has urged the Central Bank of Nigeria (CBN) to implement monetary policy adjustments to stabilise the naira from its slide against the US dollar and other major foreign currencies.
Following the adoption of a motion moved by Ismaila Haruna Dabo at the plenary on Tuesday, the House stated that the apex bank must address speculative activities in the forex market and increase the withdrawal limit of the naira to reduce the demand and pressure on dollars and other foreign currencies.
Presenting the motion, he recalled that President Bola Ahmad Tinubu had in June 2023, announced changes to the country’s foreign exchange market through the CBN that foreign currencies can now be bought and sold at rates determined by the market and not by the apex bank.
He noted that Nigeria’s foreign exchange inflows have been lagging despite unification in June, with high demand for foreign currency and limited access to official markets as well as incentivising black market purchases.
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Dabo lamented that the naira has lost a greater percentage 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 mark.
He added, “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 most vulnerable citizens, as they struggle to afford basic necessities, which are now glaring across the country”.
The House therefore urged the federal government to formulate policies and structural reforms to reduce corruption and promote economic diversification within the nation’s economy.
It further urged the government to promote exportation and reduce importation by enhancing foreign investors’ confidence on its fiscal and monetary policies.
The House mandated its Committees on Banking Regulations and National Security and Intelligence to interface with the CBN to initiate compliance strategies.
It also mandated the Committee on Banking Regulation to investigate the use of US dollars and other foreign currencies as legal tender for domestic transactions in Nigeria.