Senate Rejects Bill to Overhaul Foreign Exchange Regulations
The Nigerian Senate on Thursday dismissed a proposed bill aimed at revising regulations governing the country’s foreign exchange market. Sponsored by Senator Sani Musa, Chairman of the Senate Committee on Finance, the “Foreign Exchange (Control And Monitoring) Bill, 2024 (SB. 353)” sought to enhance control, monitoring, and supervision of foreign exchange transactions.
During the debate, Musa emphasized the bill’s importance in repealing the outdated Foreign Exchange (Monitoring and Miscellaneous Provision) Act, Cap. F34, Laws of the Federation of Nigeria, 2004. He argued that the new legislation would support the national economy by stabilizing the currency’s value through the liberalization of foreign exchange transactions and revitalizing market functionality. The bill aimed to empower the Central Bank of Nigeria (CBN) with enhanced oversight and regulatory powers, including determining exchange rates and requiring detailed reporting from authorized dealers.
However, the proposal faced significant opposition from senators, who voiced concerns that additional legislation could disrupt the current foreign exchange market operations managed by the CBN. Prominent senators, including Solomon Adeola, Tokunbo Abiru, and Aliyu Wadada, highlighted the potential negative implications and contradictions the bill might introduce.
Former Accountant General of the Federation, Senator Ibrahim Dankwambo, warned that the bill could create confusion and suggested that any further regulation should originate from the executive branch. Senator Adams Oshiomhole echoed these sentiments, emphasizing the need for caution and urging that regulatory powers remain with the CBN.
Despite calls for Senator Musa to withdraw the bill for further consultation, he refused. Senate President Godswill Akpabio then put the bill to a voice vote, with the majority of lawmakers voting against it, thereby rejecting the proposal at its second reading.
