CBN Governor To Explain Naira's Weakness To The Senate

The Senate has invited the Governor of
the Central Bank of Nigeria, Godwin Emefiele, to
brief the House on the state of the economy
especially with regards to the depreciating
currency.
The upper chamber of the National assembly
also urged the federal government to step up
efforts to diversifying the national economy
from the oil export into an economy that
depends on taxation, agriculture,
manufacturing, international tourism and solid
minerals.
The development follows a motion move by
Senator Nazif Suleiman, representing Bauchi
North, and was seconded by Senator Shehu
Sani. The lawmaker noted with serious concern
the state of Nigeria’s economy as it affected
the growing rate of the depreciation of the
Naira.
He said the local currency had depreciated in
the last few months at a much faster rate than
it had appreciated over the last two years.
Also read: CBN in no mood to devalue naira
“Aware that the cause of this depreciation is the
consequence of the negative cash flow as a
result of the downward trend of oil price which
is further worsened by speculations in the
foreign exchange market” Suleiman said.
He observed that the foreign exchange needs
of the various sectors of the economy and the
country commitment in the global economy are
not being made available. The Senate added
that the banking industry may be defaulting in
the global economy and sending a bad signal
and image about the country economy.
The legislator also noted that the speculation is
resulting to a huge capital flight with its
attendant inflationary consequence which will
affect an average Nigerian on the street.
He said illicit fund flows and money laundering
going through Nigeria financial system
contributes in weakling the value of the
currency.
“This has led to the recent decision of the CBN
to increase its vigilance to ensure that Nigerian
banks are not used as conduit for illicit funds
flow and money laundering in foreign
currencies,” Suleiman said.
Senator Philip Aduda blamed the government
inability to put in place good economic policies
for the problem.
The Senate President, Bukola Saraki,
commended Suleiman for moving the motion.
He also commended the federal government for
its effort to stabilize the country’s currency.
“The Senate will support the government in
defending the Naira.