By Christiana Ekpa
The House of Representatives on Wednesday rejected a motion urging the Federal Government to take necessary steps to stabilize the Naira, insisting that the new government be given enough time to settle down.
Presenting the motion, Hon. Beni Lar recalled the decision not the Central Bank to unify all segments of the foreign exchange market, however, on 17 July 2023, the US dollar was trading at 815 Naira to $1.
She equally recalled that 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.
The Lawmaker also said that 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;
She stressed that 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;
She said 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.
Hon. Lar lamented the rising rate of the dollar to the naira which is currently driven by market forces.
She said the continued decline of the naira is as a result of the overall reliance on importation while nothing tangible is produced locally that is exported out of the country, describing Nigeria as a consumption economy.
She said why she was not against the naira floating, we must do everything possible to encourage local content, lamenting however that government agencies were not encouraging made in Nigeria products which should have earn foreign exchange for the country.
She said the Nigerian economy will not stabilise Nigerians does not patronise made in Nigeria goods, saying “Zinox computers are produced in Nigeria. But you don’t find them in our offices”.
Supporting the motion, Minority Leader, Kingsley China said the prayers of the motion reflects the reality on the ground and actually supports the government of the day to doing something about the economy.
He said the members were elected to make laws for the good governance, prosperity and wellbeing of the country and it’s economy, adding that the role of the House is to guide the federal government.
Also speaking in support of the motion, Hon. Dachung Bagos said Nigerians have not encouraged the local content laws passed by the National Assembly, hence government parastatals don’t even buy made in Nigeria goods.
While opposing the motion, Hon. Lawal Shettima Ali said the current economic indices indicate that the current Tinubu government was on the right track and has taken some policy decisions that are currently moving the nation forward.
He said President Bola Ahmed Tinubu never promised to bring the exchange rate down to below N200 to the dollar, even though he assured that efforts will be made to reduce the exchange rate.
He said the President has already taken certain steps to reposition the economy by removing subsidy on petrol and need to be supported to do his best for the country.
In his contribution, Hon. Ahmed Jaha said members must be fair to the President and not put the cart before the horse since the current government is less than 60 days in office.
He said “we all know why the exchange rate is on the rise. We don’t have any export and the insecurity in the country has discouraged direct foreign investment which should bring in foreign exchange to the country.
” We must give the government the benefit of doubt before accessing the performance. We are all aware of various motions on how to. Improve revenue and the outcome of the investigations arising from the motions may end up bringing down the rate”.
On his part, Hon. Like Abejide said since the exchange rate are determined by market forces, the country should focus on production and export since that is the only way to attract foreign exchange into the country.
