The Senate has rejected a bill seeking to amend the Foreign Exchange Act of 2004 to introduce provisions for the control, monitoring, and supervision of transactions in the Foreign Exchange Market.
The bill, titled “The Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353),” was sponsored by Sani Musa (APC-Niger), Chairman of the Senate Committee on Finance, and was first read on Tuesday, February 20.
In his lead debate, Musa described the bill as crucial legislation intended to repeal the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap. F34, Laws of the Federation of Nigeria, 2004.
He stated that the proposed law would regulate, monitor, and supervise market transactions and related matters. Additionally, it aimed to contribute to the sound development of the national economy by facilitating foreign transactions and maintaining a balance of international payments.
Sen. Musa said, “The Bill seeks to stabilise the value of the currency by ensuring the liberalisation of foreign exchange transactions to maintain an equilibrium of the balance of international payments.”
“It will also stabilise the value of the currency by ensuring liberalisation of foreign exchange transactions and of other foreign transactions by revitalising market functionality. The newly introduced clauses will enable the CBN to determine the basic exchange rate of purchase and sale of foreign exchange,”
However, senators expressed concerns that new legislation to monitor or control the foreign exchange market, beyond the current efforts by the CBN, could be counterproductive.
