House asks central bank to prevent further downslope of Naira

The House of Representatives has asked the Central Bank of Nigeria (CBN) to halt the downward spiral in the value of the naira against the dollar.

The lawmakers reached the decision on Wednesday after debating a motion of matter of urgent public importance moved by Bamidele Salam (PDP, Osun) during plenary.

PREMIUM TIMES had reported the depreciation of the Naira against the Dollar at the Investors and Exporters (I&E) window.

 

Data from the I& E window showed that the naira closed at N411.50, a 0.11 per cent decline from N411.07 it traded on Monday.

 

The Naira experienced an intraday low of N421.96 and a high of N400.00 at the Nafex window, before closing at N411.50 on Tuesday.

While moving the motion, Mr Salam highlighted the discrepancy between the rate mentioned by the CBN Governor, Godwin Emefiele, and the rate published on the website of the apex bank.

 

He said that the naira has lost 9 per cent of its value in the past 6 months.

 

“The CBN Governor said that the official exchange rate stands at N410 to the dollar, which is 7.6% weaker than the rate of N379 published on the CBN’s website.

 

“While the value of the Nigerian Naira relative to the US Dollar has declined by 9 per cent in the last 6 months, the South African Rand and Ghanaian Cedi have appreciated by 11.4 per cent and 1 per cent, respectively,” he noted.

 

The motion was unanimously adopted, and the lawmakers asked the Committee on Banking and Currency to ensure compliance and report back to the House in two weeks for further legislative action.