Thursday, July 11, 2024 - The Senate has rejected a bill aimed at repealing the Foreign Exchange (Monitoring and Miscellaneous Provision) Act, 2004, and establishing a new Foreign Exchange Market in Nigeria.
Sponsored by Senator Mohammed Sani representing Niger East, the
bill was first read in February 2024. Its purpose was to introduce provisions
for the control, monitoring, and supervision of transactions within the Foreign
Exchange Market.
In his lead debate, Senator Sani emphasized that the bill did not
seek to establish any new agency or commission that would require government
funding. He argued that, if passed, the bill would contribute to the sound
development of Nigeria’s economy, facilitate foreign transactions, and
stabilize the naira by liberalizing foreign transactions.
Clause 6 of the bill proposed new sub-clauses requiring authorized
dealers to report foreign exchange sources exceeding $10,000 to the Central
Bank of Nigeria (CBN), detail their utilization, and obtain prior CBN approval
for importing foreign currency notes.
While some lawmakers supported the bill, others called for further
scrutiny, describing certain provisions as confusing. Concerns were raised
about the immediate impact the bill’s passage could have on the forex market
and the potential pressure on the naira.
After a voice vote, the Senate decided to quash the bill.
0 Comments