Nigerian senators have rejected a bill seeking to amend the Foreign Exchange Act of 2004 expected to reduce the regulatory function of the Central Bank of Nigeria on the Fx Market.
The bill, titled “The Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353),” was sponsored by Sani Musa (APC-Niger), Chairman of the Senate Committee on Finance, and was first read on Tuesday, February 20.
According to NAN, Musa described the bill as crucial legislation intended to repeal the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap. F34, Laws of the Federation of Nigeria, 2004.
He stated that the proposed law would regulate, monitor, and supervise market transactions and related matters.
He added that the bill will 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.”
However, senators vehemently opposed the bill.
They said it would be counterproductive to CBN’s effort at stabilizing the foreign exchange market.
Senators who opposed the bill are 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), giving reason for opposing the bill said that passing such a law would confuse Nigerians.
Similarly, Senator Adams Oshiomhole (APC-Edo) pointed out that the senators who had spoken had meticulously summarized and amplified the contradictions and negative implications of passing the law.
Oshiomhole said he believes the bill should not proceed further, as it would effectively take over the CBN’s monetary policy regulations.
The President of the Senate, Godswill Akpabio, urged Senator Musa to withdraw the proposed law for further consultations but the senator declined.
Senator Akpabio then called for a voice vote to decide its approval or rejection for a second reading and the majority of lawmakers voted against it.
The development comes as the Naira recorded its first appreciation against the dollar on Thursday, exchanging at N1,554.65 per dollar.
Nigerian senators reject bill seeking to reduce CBN’s regulatory power on FX market
