It’s criminal! Lawmaker urges CBN to clamp down on use of dollars for local transactions

A House of Representatives member, Ademorin Kuye has said there is a need for the Central Bank of Nigeria (CBN) to tackle the depreciation of the naira while clamping down on the domestic use of dollars for domestic transactions.

He spoke on Tuesday while contributing to a debate at plenary on a motion moved by Ismail Dabo (APC, Bauchi) on Tuesday.

Kuye (APC, Lagos), said most international airlines demand dollars for payment of airfare, while real-estate companies also demand dollars for means of payment.

“Today, if you want to fly foreign airlines, they charge you dollars. In some high-end markets, particularly real estate, they charge you dollars. This is criminal,” Rep Kuye said.

Meanwhile, the House of Representatives, has directed its House Committee on Banking Regulation to carry out a probe into the use of the dollar and other foreign currencies as legal tender for domestic transactions in Nigeria.

The lawmakers also called on the CBN to address the impact of the failing Naira against the Dollar and other currencies by implementing monetary policy adjustments to stabilise the currency, address speculative activities in the forex market, and increase the withdrawal limit of the naira to reduce the pressure on dollars and other foreign currencies.

The House further urged the Federal Government to formulate policies and structural reforms to reduce corruption and promote economic diversification within the nation’s economy.

Read also: Naira continues free fall, exchanges for N1,025 to a dollar

The resolution to investigate the use of the dollar and other foreign currencies in Nigeria as legal tender for domestic transactions was a sequel to the motion moved by Dabo (APC).

Dabo, while moving the motion, said the naira continues to fall against major currencies since the unification declaration by President Bola Tinubu because of the scarcity of forex.

He said the country’s inability to earn sufficient forex means that the naira could further slide down, causing crippling inflation.

He also noted that oil theft had further depleted the ability of the country to earn foreign exchange.

“The president’s intention is to allow market forces to determine naira value, but the alarming exchange rate has impacted Nigeria’s economy, causing untold hardship due to increased demand for dollars and a dollar shortage.

“About 90 per cent of Nigeria’s total export earnings are from oil, which is the mainstay of the country’s economy, but changes in the price of oil around the world have a big impact on the country’s foreign exchange market. This explains why the naira has continued to depreciate,” Rep Dabo said.

He added: “A weaker and depreciating naira could increase Nigeria’s external debt servicing costs, potentially reducing government spending on critical sectors like healthcare and education.”

Also speaking in support of the motion, Bamidele Salam (PDP, Osun), noted that the new management team of the CBN had not provided a policy direction since their confirmation by the Senate.

“The management has been confirmed since but we have not heard a policy statement from him, and the market reacts to policy statements,” he said.

The House, in its resolution, further urged the Federal Government to promote exportation and reduce importation by enhancing foreign investors’ confidence in its Fiscal and Monetary Policies.

It mandated the Committees on Banking Regulations and National Security and Intelligence to interface with the Central Bank of Nigeria with the purpose of initiating compliance strategies.

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