Senate summons CBN Governor over depreciation of Naira

The Senate on Wednesday invited the Governor of Central Bank of Nigeria,Mr Godwin Emefiele  to brief  it on the state of the economy especially with regard to the depreciation of the  Naira.  The upper chamber of the National assembly 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.

Wednesday’s   move followed  a motion  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 affects the growing rate of the depreciation of the Naira.

He said the Naira has depreciated in the last few months at a much faster rate than it had appreciated over the last two years. “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’s  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’s economy.

The Senator also noted that the speculation is resulting in  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’s  financial system contributes in weakening  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.

In his contribution, Senator Philip Aduda blamed the government’s  inability to put in place good economic policies for the problem.

The Senate President Senator Bukola Saraki in his remark commended the Senator Nazif Suleiman for moving the motion. He also commended the federal government for its effort to stabilize the country currency. Saraki added that the Senate will support the government in defending the Naira.