[UPDATE] Foreign Exchange Rate: Reps urge support for Tinubu’s govt

Some members of the House of Representatives at Wednesday plenary called for more time and support for the President Bola Ahmed Tinubu led government to fix the economy.

The appeal from the members followed the consideration of a motion on the “Need to Stabilize Nigeria’s Foreign Exchange Rate” moved by Hon. Beni Lar.

Lar in her motion noted that on 14 June 2023, the Central Bank of Nigeria announced the unification of all segments of the foreign exchange market, however, on 17 July 2023, the US dollar was trading at 815 Naira to $1.

She said: “In July 1980, the exchange rate was $1 to 0.80Kobo, in July 2022, the rate was $1 to 670 Naira, while in July 2023, the exchange rate is now $1 to 815 Naira,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.

“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.

“If this is not reversed, $1 could be exchanged for 1,000 Naira by December 2023, the current economic situation may trigger an inflationary spiral that may throw Nigeria into economic recession and depression”.

Speaking extemporaneously, Lar added that Nigerians must patronize made in Nigeria good to grow the economy.

“What is triggering the Naira is due to the fact that Nigeria relies on importation of goods. Nigeria’s inflation is higher than normal. I have nothing against the floating of the Naira. If we wear made in Nigeria, that will automatically increase out foreign earnings. Hoe many of us buy made in Nigeria vehicles? We prefer foreign made goods”, she said.

In her prayers, Lar urged the House call on the federal government to take necessary steps to stabilize 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 considered the motion as controversial in the sense that it was meant to tinker with the government recent policy of floating the naira.

They argued that the stabilization of the naira was a function of market forces.

They instead called for support for Tinubu’s government.

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 remarks, 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”.

Also speaking, Hon. 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”.

Similarly, Kuye in his contribution said “I find it difficult to sit down and support the disjointed nature of the motion. Nigeria had done lowest inflation rates”.

Also, speaking in favour of the motion, the minority leader of the House, Hon. Kingsley Chinda reminded the lawmakers that the prayer of the motion was to urge the government, saying it was not to attack the government.

“I will like to remind us of out duty which is to make laws for the prosperity of the country. Look at the prayers. Are we saying we should not urge the government? The prayer is a support to the government. It is in tandem. We should support the motion. We should not be partisan. We need the government to better our policies”, Chinda said.

In his remarks, Hon. Dachung Bagos from Plateau State called for the incorporation of local content in all official dealings.

“The reality of the moment is what we need to look at and not about being bring partisan. Even when this policy is in place, we have not been able to look at local content in every single thing we use in this country. The leadership should take into consideration the oil sector and revive our refineries”, he said.

On his part, the minority whip of the House, Hon. Ali Isa JC added that “the mover of this motion has a good intention. I don’t believe there is a reason for us to go against this motion”.

But when the motion was put to voice vote by the deputy speaker who presided over the plenary, the nay sayers had their way and the motion failed to fly.