The Central Bank of Nigeria, CBN and the House of Representatives Committee on Banking and Currency have been issued a 2-weeks ultimatum to address the further collapse of Naira against the United States Dollar, USD.
The House of Representatives gave the marching order to the apex bank to ensure it rapidly install a policy that will reduce or cease further depreciation of the Nigerian currency.
It recalled that the Central Bank Governor, Godwin Emefiele, once told the House the recognised exchange rate of one Naira to a Dollar currently translates to four-hundred and ten. This means 7.6 per cent weaker than the supposed rate of three-hundred and seventy-nine Naira advertised on the website of the apex bank.
CBN Gets 2-Weeks Ultimatum
The directive for CBN to properly regulate the diminishing value of the Naira was issued yesterday in Abuja. The House also charged the CBN Governor to ensure he addresses other international legal matters relating to the currency.
Resolutions to speedily appraise the Naira devaluation issue followed a motion of urgent public importance by Honourable Bamidele Salam.
Reflecting on the event that transpired in February 2021, regarding Godwin Emefiele address to the bankers’ committee during a business programme, with the theme centred on Nigerian Economy, the House said the country admitted the message was promising the Naira to seem like it would improve.
Unfortunately, today, “while the value of the Nigerian Naira relative to the US Dollar has declined by 9% in the last six months, the South African Rand and Ghanaian Cedi have appreciated by 11.4% and 1%.” The Representatives revealed.
However, the Reps also acknowledged that CBN initially approved multiple exchange rates in 2020 to bypass an apparent devaluation.
Before the session was over, the House instructed the Committee on Banking and Currency to immediately dive into action and ensure CBN complies with the directive to allow for further legislative decisions.