The Senate on Thursday, rejected a Bill seeking to amend the Foreign Exchange Act, 2004.
The piece of legislation also sought to make provisions for control, monitoring and supervision of transactions conducted in the Foreign Exchange Market.
The bill was sponsored by the Chairman, Senate Committee on Finance, Sani Musa (APC-Niger) during plenary.
The proposed law is titled: “The Foreign Exchange (Control And Monitoring) Bill, 2024 (SB. 353) was read for the first time on Tuesday, Feb. 20.
In his Lead debate, Musa described the bill as an important legislation that sought to repeal the Foreign Exchange (Monitoring and Miscellaneous Provision) Act, Cap. F34, Laws of the Federation of Nigeria, 2004.
Musa said the proposed law would provide for regulation, monitoring and supervision of the transactions conducted in the market and for related matters.
He said it would also contribute to the sound development of the national economy by striving to facilitate foreign transactions and maintain an equilibrium of balance of international payments.
“The Bill seeks to stabilise the value of currency by ensuring the liberalisation of foreign exchange transactions to maintain an equilibrium of balance of International payments.
“It will also stabilise the value of currency by ensuring liberalisation of foreign exchange transactions and of other foreign transactions by revitalising
market functionality.
“The newly introduced clauses will enable the CBN to determine the basic exchange rate of purchase and sale of foreign exchange,” Musa said.
Most senators in their various contributions, expressed fears that a fresh legislation, seeking to monitor or control activities of the foreign exchange market apart from what the CBN was doing, could be counter productive.
Some of the senators who expressed serious reservations over the proposed law were Solomon Adeola (Chairman Committee on Appropriation ); Tokunbo Abiru (Chairman, Banking, Insurance and other Financial Institutions) and Aliyu Wadada (Chairman, Senate Public Account Committee).
For instance, Sen. Ibrahim Dankwambo (APC-Gombe) noted that the law, if passed, would confuse Nigerians.
He was of the opinion that any further law aimed at regulating the foreign exchange market should come from the executive arm of government to avoid crisis in the sector.
Also contributing, Sen. Adams Oshiomhole (APC-Edo) said: “we have to be careful because we cannot speculate. Anything done in this house, Nigerians will take it very seriously, because we have the power to make laws.
“Senators who have spoken, have summarised and amplified meticulously, the contradictions and negative implications of passing the law.
“I believe that the bill should not attract further hearing because we are trying to take over the monetary policy regulations of the CBN if we go ahead with it.
“If the executive arm of government likes, let them bring a Bill to further strengthen the regulatory powers of the CBN. It is not our work.”
The President of the Senate, Godswill Akpabio, urged Musa to withdraw the proposed law for further consultations but the senator refused to do so.
Akpabio subsequently called for voice vote to determine its approval or rejection for second reading and majority of the lawmakers voted against it.
