Nigerian Senators Reject Bill Aimed At Reducing CBN’s Regulatory Power On FX Market
Nigerian senators have rejected a bill that sought to amend the Foreign Exchange Act of 2004, aiming to reduce the Central Bank of Nigeria’s (CBN) regulatory authority over the foreign exchange market.
The bill, titled “The Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353),” was introduced by Sani Musa (APC-Niger), Chairman of the Senate Committee on Finance, and had its first reading on Tuesday, February 20.
According to the News Agency of Nigeria (NAN), Senator Musa described the bill as essential legislation to repeal the existing Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap. F34, Laws of the Federation of Nigeria, 2004. He emphasized that the proposed law would regulate, monitor, and supervise market transactions and related activities to stabilize the country’s foreign exchange market.
“The bill seeks to stabilize the value of the currency by ensuring the liberalization of foreign exchange transactions to maintain an equilibrium of the balance of international payments,” Musa stated.
However, the bill faced strong opposition from senators who argued it would undermine the CBN’s efforts to stabilize the foreign exchange market. Among the opponents were Solomon Adeola, Chairman of the Committee on Appropriation; Tokunbo Abiru, Chairman of the Committee on Banking, Insurance, and Other Financial Institutions; and Aliyu Wadada, Chairman of the Senate Public Accounts Committee.
Senator Ibrahim Dankwambo (APC-Gombe) contended that passing the bill would create confusion among Nigerians. Senator Adams Oshiomhole (APC-Edo) further argued that the bill would disrupt the CBN’s monetary policy regulations, reinforcing the opposition’s stance.
Senate President Godswill Akpabio urged Senator Musa to withdraw the bill for further consultations, but Musa declined. Akpabio then called for a voice vote, resulting in the majority of lawmakers voting against the bill’s advancement to a second reading.
This development comes as the Naira recorded its first appreciation against the dollar on Thursday, trading at N1,554.65 per dollar.
