CBN governor summoned to explain naira weakness

Abuja - The Senate has invited the Governor of the Central Bank of Nigeria, Godwin Emefiele, to brief the House on the state of the economy especially with regards to the depreciating currency. The upper chamber of the National assembly also urged the federal government to step up efforts to diversifying the national economy from the oil export into an economy that depends on taxation, agriculture, manufacturing, international tourism and solid minerals. The development follows a motion move 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 affected the growing rate of the depreciation of the Naira. He said the local currency had depreciated in the last few months at a much faster rate than it had appreciated over the last two years. Also read: CBN in no mood to devalue naira “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 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 economy. The legislator also noted that the speculation is resulting to 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 financial system contributes in weakling 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. Senator Philip Aduda blamed the government inability to put in place good economic policies for the problem. The Senate President, Bukola Saraki, commended Suleiman for moving the motion. He also commended the federal government for its effort to stabilize the country’s currency. “The Senate will support the government in defending the Naira. - CAJ News