The Nigerian Senate recently rejected the Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353), proposed by Senator Sani Musa from Niger East.
This legislation aimed to replace the existing Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap. F34, Laws of the Federation of Nigeria, 2004, with stricter regulations governing foreign exchange transactions.
Senator Musa argued that empowering the Central Bank of Nigeria (CBN) to oversee foreign exchange transactions comprehensively would stabilize currency values, facilitate foreign transactions, and improve market operations.
During the Senate debate, concerns were raised by several senators including Solomon Adeola, Tokunbo Abiru, and Aliyu Wadada, who cautioned against potentially conflicting with the CBN’s existing regulatory framework.
They highlighted risks of legislative overlap that could undermine the CBN’s autonomy in monetary policy and create unintended disruptions in the market.
Former Accountant General of the Federation, Senator Ibrahim Dankwambo, emphasized the need for executive-led initiatives in foreign exchange regulation to prevent confusion among Nigerians, while Senator Adams Oshiomhole stressed the importance of avoiding legislative intrusion into monetary policy matters.
In response to these concerns, Senate President Godswill Akpabio suggested withdrawing the bill for further consultations, a proposal Senator Musa declined. The Senate then voted against advancing the bill for its second reading.