Oscar Chukwugekwu, Abuja
The Senate on Wednesday invited the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, to appear before it to brief the federal legislators on the implications of Naira depreciation on the nation’s economy.
The Upper Chamber also urged the Federal Government to step up efforts in diversifying the national economy from the oil export into an economy that depends on taxation, agriculture, manufacturing, international tourism and solid minerals prospecting.
The above resolutions followed a motion sponsored by Senator Nazif Suleiman, which was entitled “The state of economy: Naira depreciation and its implications”.
Suleiman observed that the foreign exchange needs of the various sectors of the economy are not presently made available because Nigeria’s commitments in the global economy are also not made available.
“The state of Nigerian economy as it affects the growing rate of the depreciation of the Naira is a very serious concern. Naira has depreciated in the last few months at a much faster rate than it had appreciated over the last two years.
“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 markets.
“The banking industry may be currently defaulting in the global economy, and that is sending a bad signal and bad image about the Nigerian economy. This resultant speculation is resulting to a huge capital flight with its attendant inflationary consequences, which will affect an average Nigerian on the street.
“Illicit fund flows and money laundering going through Nigerian financial system contributes in weakling the value of the Naira, which has led to the recent decisions 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.
“The procedure for processing demand and supply of foreign exchange by the CBN be reviewed and various additional options considered to stem the precipitous depreciation of the Naira, and thereby discouraging speculators,” Suleiman said.
Two prayers were, however, rejected by the Senate.
They include: that the Senate urge the Federal Government to stop the leakages in the national economy; and that the Senate also urge the Federal Government to give marching orders to the CBN to bring to book anyone, who is found wanting of the money laundering and other related offences.
