CBN Retains Full Regulatory Control Over FX Market As Senate Bill Fails

CBN Retains Full Regulatory Control Over FX Market As Senate Bill Fails

Nigerian senators have rejected a bill aimed at amending the Foreign Exchange Act of 2004, which sought to reduce the regulatory authority of the Central Bank of Nigeria (CBN) over the FX market……… CONTINUE READING

The bill, titled “The Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353),” was introduced by Sani Musa (APC-Niger), Chairman of the Senate Committee on Finance, and was first presented on Tuesday, February 20.

Musa explained that the legislation was crucial for repealing the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap. F34, Laws of the Federation of Nigeria, 2004. He emphasized that the proposed law aimed to regulate, monitor, and supervise market transactions to stabilize Nigeria’s foreign exchange market.

However, the bill faced strong opposition from several senators who argued that it would undermine the CBN’s efforts to stabilize the FX market. Solomon Adeola, Tokunbo Abiru, and Aliyu Wadada, among others, voiced concerns about potential confusion among Nigerians and the adverse implications of passing such a law.

Senator Adams Oshiomhole highlighted the contradictions and negative implications discussed by opposing senators, suggesting that the bill would encroach upon the CBN’s monetary policy jurisdiction.

Despite Senate President Godswill Akpabio’s suggestion for further consultations and a withdrawal of the bill, Senator Musa declined. A subsequent voice vote resulted in the majority of lawmakers voting against advancing the bill to a second reading.

Meanwhile, the rejection coincided with the Naira’s first appreciation against the dollar on Thursday, trading at N1,554.65 per dollar.