The Nigerian Senate has rejected a bill seeking to monitor and regulate the Foreign Exchange, Forex market in Nigeria after it failed to scale second reading.
The bill sponsored by titled “ Foreign Exchange (Control and Monitoring) Bill, 2024 was thrown out after lawmakers vehemently rejected the proposed legislation.
Senators expressed concerns that the bill could destabilise the sensitive foreign exchange market, leading to chaos and conflicts with existing regulations.
Senator Ibrahim Dankwabo warned that introducing new guidelines could increase demand for foreign exchange and destabilise the market, emphasising the importance of allowing the Central Bank of Nigeria, CBN to manage the market without interference.
Sponsor of the bill, Senator Sani Musa explained that its objectives include establishing a foreign exchange market, regulating and monitoring transactions, maintaining balance in international payments, and stabilising currency value through liberalised foreign exchange transactions.
He emphasised that the bill would enable the CBN to set exchange rates, promote economic development, facilitate foreign transactions, and stabilise the currency.
He noted that the bill sought to repeal the Foreign Exchange (Monitoring and Miscellaneous Provision) Act, and establish the Foreign Exchange Market in Nigeria, to make provisions for the control, monitoring, and supervision of transactions conducted in the Foreign Exchange Market.
However, despite his assurances, the Senate raised concerns and appealed to the sponsor to withdraw the bill.
When the bill was put to a voice vote, it was overwhelmingly rejected.
(Editor: Terverr Tyav)
