UPDATE: SENATE QUASHES BILL TO REPEAL FOREX ACT
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A measure to create a foreign exchange market in Nigeria and repeal the Foreign Exchange (Monitoring and Miscellaneous Provision) Act, 2004—which is now under the jurisdiction of the Central Bank of Nigeria—has been overruled by the Senate.
The measure, which was introduced by Senator Mohammed Sani, a representative of Niger East, and first read in February 2024, attempts to establish guidelines for the management, oversight, and supervision of exchange market transactions.
Musa pointed out in his lead discussion that the bill does not aim to create any commissions or agencies that could need government money.
When the bill becomes law, it is anticipated to support the healthy growth of the country’s economy, ease international trade, and stabilize the value of the naira by guaranteeing the liberalization of international trade.
The bill’s clause 6 adds New Subclauses (2), (4), and (5), which mandate that authorized dealers report to the CBN any foreign exchange sources that exceed $10,000 in US dollars, use those sources, and get the CBN’s prior approval before attempting to import foreign currency notes.
While some legislators supported the bill, others demanded a closer examination of its underlying provisions, which some have deemed unclear.
Senators voiced concerns about the immediate impact the bill’s passing into second reading would have on the foreign exchange market and the ensuing pressure it would put on the naira.
The bill was overturned when it was put to a voice vote.
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