BusinessNewsNigeriaHouse of Reps task CBN to address naira depreciation

The House of Representatives has tasked the Central Bank of Nigeria, CBN, to address the steep downward slide of the naira against the US dollar. The naira is exchanged for over N1,000/$1.

During plenary on Tuesday, Hon. Ismail Dabo (APC, Bauchi) lamented that the naira has been on a free fall against the USD since the central bank, with the backing of the federal government, introduced the currency float policy, which now permits market forces to determine exchange rates.

Dabo said the “alarming exchange rate” has impacted Nigeria’s economy, causing “untold hardship” due to increased demand for dollars and a dollar scarcity.

He, therefore, moved a motion to mandate the CBN and the federal government to implement some policies to stabilise the currency.

“Addressing Nigeria’s financial challenges requires collective responsibility from all stakeholders, including parliament, which has been the voice of the common man,” he said.

The House unanimously adopted the motion and made several resolutions.

First, the CBN should implement monetary policy adjustments to stabilize 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.

Second, the federal government should formulate policies and structural reforms to reduce corruption, promote economic diversification within the nation’s economy, promote exportation, and reduce importation by enhancing foreign investors’ confidence in its fiscal and monetary policies.

Lastly, the House Committee on Banking Regulations and National Security should investigate the use of foreign currencies for domestic transactions, and ensure the CBN’s compliance with the resolutions.

By Ezinwanne Onwuka (Senior Reporter)
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