The House of Representatives has announced its intention to investigate the use of foreign currencies, particularly the dollar, as legal tender for domestic transactions in Nigeria. This decision was reached following a motion presented by Ismail Dabo (APC, Bauchi) during a plenary session.
Dabo’s motion highlighted the continuous depreciation of the Nigerian Naira against major currencies since the unification declaration by President Bola Tinubu. He attributed this decline to the scarcity of foreign exchange (FX), which has led to increased demand for foreign currencies. Dabo also pointed out that oil theft has further eroded the country’s ability to earn foreign exchange, given that a significant portion of Nigeria’s export earnings comes from oil.
The legislator expressed concern that the depreciation of the Naira could result in crippling inflation, potentially leading to adverse economic consequences. He emphasized the need for the Central Bank of Nigeria (CBN) to address the depreciation issue.
During the debate on the motion, other lawmakers also voiced their concerns. Ademorin Kuye (APC, Lagos) urged the CBN to address the depreciation of the Naira and curb the use of foreign currencies for domestic transactions, citing examples such as international airlines and real-estate companies demanding dollars for payment.
Bamidele Salam (PDP, Osun) criticized the new CBN management team for not providing a clear policy direction since their confirmation by the Senate.
In response to the concerns raised during the debate, the House of Representatives passed several resolutions, including urging the CBN to implement monetary policy adjustments to stabilize the currency, address speculative activities in the forex market, and increase the withdrawal limit of the Naira to reduce the pressure on foreign currencies. The federal government was also called upon to formulate policies and structural reforms to reduce corruption and promote economic diversification. Furthermore, the House mandated its Committee on Banking Regulation to investigate the use of foreign currencies for domestic transactions and its Committees on Banking Regulation and National Security and Intelligence to engage with the CBN to develop compliance strategies.
The motion was unanimously adopted when put to a vote by Deputy Speaker Ben Kalu, signifying the House’s commitment to addressing the challenges associated with the use of foreign currencies in Nigeria.