The House of Representatives has rejected a motion for the stabilisation of the exchange rate.
A member of the House, Beni Lar, representing Langtang North/Lantang South Federal Constituency of Plateau State, had in a motion on the floor of the House on Wednesday titled, ‘Need to stabilise Nigeria’s foreign exchange rate’, argued that N1,000 may exchange to a dollar if nothing was done to stabilise the exchange rate.
Lar noted that “In July 1980, the exchange rate was $1 to 0.80Kobo, in July 2022, the rate was $1 to 670 Naira, while in July 2023, the exchange rate is now $1 to 815 naira, shortly after the new administration had promised during the campaigns and upon inauguration to stabilise Nigeria’s exchange rate at N200 to $1.
“In the 1980s, most of the food and products consumed were grown or produced in Nigeria. Today the Nigerian economy is mainly dependent on importation and there lies the source of the terrible exchange rate we are now experiencing.
“The importation of vehicles and other commodities has dropped, since the floating of the naira by the single exchange rate. The impact of the unified exchange rates has made Nigerian students abroad to suffer tuition fees increase by over 60 per cent making the money in their bank accounts insufficient to pay school fees due to devaluation of the naira.”
She also added that “The naira has been on a rapid decline against the US dollar, euro and pounds sterling, thus leading to hike in prices of goods and services, thereby worsening the inflationary situation and the cost of doing business in Nigeria.
“The high prices of goods and services are taking a huge toll on average Nigerians, making lives unbearable.
“If this is not reversed, $1 could be exchanged for 1,000 naira by December 2023 and the current economic situation may trigger an inflationary spiral that may throw Nigeria into economic recession and depression.”
In his contribution to the motion, Lawan Ali representing Bursari/Geidam/Yunusari Federal Constituency, Yobe State said “I have never heard of the President promising to make the dollar equal to N200. The President took the bull by the horn to remove subsidy. We must commend his efforts not by way of challenge. We need to support him”
