New Telegraph

Lawmakers Seek Uniform Exchange Rate To Strengthen Naira

In a bid to further strengthen the Naira, the members of the House of Representatives have revealed their plan to propose a uniform exchange rate across the country to unify both the Central Bank of Nigeria Bank (CBN), Commercial Banks and all other licensed companies and individuals to carry out the business of Bureau De Change (BDC).

The Lower Chamber of the National Assembly also revealed that it is proposing the separation of the Chairman of the Board of CBN from the office of the apex bank’s Governor.

These proposals are contained in a bill for an Act to amend the CBN Act, 2004 and for Related Matters, 2023 which passed through a second reading at the House plenary on Thursday.

Hon. Francis Ejiroghene Waive (APC, Delta), sponsored the bill seeking to amend Section 16 of the Principal Act to address the determination of the exchange rate of the Naira.

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The bill also proposed an amendment to Section 6(2)(a), by adding a new paragraph which mandates that the chairman of the bank’s board shall be a former governor of the CBN, a former chairman of the Bank, or a former managing director of a bank.

The amendment states that; “the exchange rate of the Naira shall be determined, from time to time, by a suitable mechanism devised by the Bank for that purpose, provided that such rates shall at all times be uniform throughout the country both at the Bank, Commercial Banks or any such persons licensed to carry on the business of Bureau De Change.”

The Bill also proposes that in the event of the need for a currency swap of Naira redesign, as witnessed from late last year to early this year, the Bank would be directed to call in its notes or coins, subject to a notice of not less than one year.

This amendment reinforces the need for adequate time for the notice of change of the Naira notes before exercising the power to call in the old notes, Hon. Waive said.

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