The Senate, in its session on Thursday, rejected a proposed bill aimed at reviewing regulations governing Nigeria’s foreign exchange market.
Sponsored by Senator Sani Musa (APC Niger East), Chairman of the Senate Committee on Finance, the legislation titled “The Foreign Exchange (Control And Monitoring) Bill, 2024 (SB. 353)” sought to introduce comprehensive provisions for the control, monitoring, and supervision of transactions within the foreign exchange market. It was formally introduced on Tuesday, February 20, 2024.
Senator Musa underscored the bill’s significance, highlighting its intent to repeal the existing Foreign Exchange (Monitoring and Miscellaneous Provision) Act, Cap. F34, Laws of the Federation of Nigeria, 2004. He emphasized that the bill aimed to stabilize the currency value and facilitate foreign transactions.
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“The Bill seeks to stabilize the value of the currency by ensuring the liberalization of foreign exchange transactions and revitalizing market functionality,” Senator Musa stated, outlining key provisions including the Central Bank of Nigeria’s expanded authority over foreign exchange matters.
During the session, several senators expressed reservations about the bill, fearing it might overlap with the Central Bank of Nigeria’s existing regulatory framework and potentially disrupt market stability. Senators Solomon Adeola, Tokunbo Abiru, Aliyu Wadada, and others voiced concerns that introducing additional legislative measures could lead to confusion and operational challenges in the financial sector.
Former Accountant General and Senator Ibrahim Dankwambo cautioned against further legislative intervention in the foreign exchange market, urging that such initiatives should originate from the executive branch to avoid policy conflicts.
Senator Adams Oshiomhole echoed similar sentiments, emphasizing the Senate’s responsibility to avoid undermining the Central Bank’s regulatory authority.
Senate President Godswill Akpabio urged Senator Musa to withdraw the bill for further consultation, but the request was declined. Subsequently, a majority voice vote among the lawmakers led to the bill’s rejection for further consideration.
The outcome signifies a stance by the Senate to maintain the status quo in foreign exchange market regulation, pending any future executive-led initiatives aimed at strengthening regulatory frameworks.
