From Ndubuisi Orji, Abuja
House of Representatives has rejected a motion calling on the Federal Government to take steps to stabilize the exchange rate.
The House, yesterday’s plenary, voted against the motion sponsored by Beni Lar on “Need to Stabilize Nigeria’s Foreign Exchange Rate”, as members described the fluctuation of the exchange rate as market forces at play.
Lar, in her motion, had expressed fears that the exchange rate may hit N1000 to the US dollar very soon, due to the rate the national currency is losing value.
The lawmaker, while stressing the need to stem the free fall of the Naira, noted that the All Progressives Congress ( APC) during campaigns for the last general election had promised that the exchange rate will be N200 to the US dollar, if it wins the presidential poll.
She explained that “ on June 14, 2023, the Central Bank of Nigeria announced the unification of all segments of the foreign exchange market. But, on July 17, 2023, the US dollar was trading at 815 Naira to $1.
“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 setback 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 spike that may throw Nigeria into economic recession and depression”.
However, Lawan Shettima, while speaking against the motion, said he never heard President Bola Tinubu during the campaigns promised to bring exchange rate at one dollar to N200.
Shettima said “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”.
Regardless, the minority leader, Kingsley Chinda, in his contribution, said the motion was not an attack on the government, but the urge the Executive arm to take steps to stabilize the Naira.
“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 stated.