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Monday, 21 November 2016

Senate will reject proposal to punish people for ownership of Forex


The Senate has expressed surprise at a recommendation by the Nigerian Law Reform Commission for a review of the Nigerian Foreign Exchange Act in order to empower the Central Bank of Nigeria to jail people for up to two years  or fine them for 20 percent of the amount of the foreign currency held in their possession for more than 30 days.

The Senate in a statement signed by its spokesperson, Senator Aliyu Sabi Abdullahi stated that with its focus on boosting investor' confidence in the nation's economy,  such move as proposed by the Commission that will prevent investors from making  free entry and free exit from the market will be outrightly rejected by its members.

 "The measure is disruptive and counter productive, threatening to undermine many of the reform efforts already underway in the legislature and by government ministries intended to boost investor confidence. 
“The Senate would never pass such a punitive and regressive proposal. Overall, some of the Commission’s recommendation has many sound attributes and could help Nigeria’s investment climate.  We believe the CBN should have the authority to regulate the forex market and determine the exchange rate policy as already enshrined in its enabling Act.

” A market-oriented exchange rate policy is the best recipe for guiding the operations of the foreign exchange market.  This will ensure the supremacy of market mechanisms in efficiently allocating the scarce forex resources", the Senate stated.
It added:
 “we will continue to work with the Executive to halt the worsening recession and return to economic growth.” 
The proposed changes are said to be intended to help control capital flows and prevent foreign exchange from being taken out of the country.  Analysis of the proposed rules changes, that were posted on the Commission’s website, states that “the amendments are necessary for effective monitoring and control, and to ensure probity in foreign-exchange transactions in Nigeria.”

 Last September, the Senate spearheaded an economic agenda to pass key reform legislations to promote economic growth through greater public sector participation, boost investor confidence and create jobs

Also in June, the CBN was cheered for loosening its control over exchange rate policy in a bid to encourage investors to return to Nigeria and prevent capital flight.  Hopes were high after the Nigerian government finally allowed the naira to float, as was recommended by domestic and international investment advisors.  Currently, however, the markets do not reflect a loosening of CBN control over the forex market, leading to the emergence of multiple exchange rates.

Signed
Senator Aliyu Sabi Abdullahi
Chairman, Senate Committee on Media and Public Affair

18 comments:

King Maker said...

Story

Uju Phil said...

Bless you guys, who ever came up with such dumb suggestion is as silly as anything else! #CluelessBunch

chinasa enyinnaya said...

Enter your comment...when the head is bad, what do you expect

freeborn bamislam suani ahmad zinalima said...

Thank u senator. IS LIKE NIGERIA SENATORS BRAINS ARE WORKING now I CAN SEE IT. please what is wrong with this shameless CBN governor huh? IS NO LONGER MMM IS NOW FOREX WHAT IS WRONG WITH THIS IDIOT HUH? ALL BECAUSE OF ENVY OVER MMM AND FOREX SHAME TO U. Is this not embarrassing huh? When they are suppose to think of how to better peoples life they are BUSY DESTROYING IT IN THE NAME OF ENVY AND WICKEDNESS.
terrorist buhari must resign with these idiots
















#sad indeed

freeborn bamislam suani ahmad zinalima said...

Thank u senators. IS LIKE NIGERIA SENATORS BRAINS ARE WORKING now I CAN SEE IT. please what is wrong with this shameless CBN governor huh? IS NO LONGER MMM IS NOW FOREX WHAT IS WRONG WITH THIS IDIOT HUH? ALL BECAUSE OF ENVY OVER MMM AND FOREX SHAME TO U. Is this not embarrassing huh? When they are suppose to think of how to better peoples life they are BUSY DESTROYING IT IN THE NAME OF ENVY AND WICKEDNESS.
terrorist buhari must resign with these idiots
















#sad indeed

MUFC said...

But they want to close MMM... Thieves

Eddy Ogbunambala said...

Ok

Jamila Shaibu said...

Okkk

Odibe Blessing said...

Good

Anonymous said...

tell me buhari is not mad

Gbenga Popoola said...

They juss talkin about investor confidence. Sounds selfish to me. You pple will use our budget to do MMM

Juliet Iwuno said...

Better! Linda take note!

OMOBA E said...

Buhari is outdated old illiterate Fulani herdsman with archaic economic ideology.

Vivian Reginalds said...

gd
-D great anonymous now as Vivian Reginalds

truthie said...

All of you applauding them, they don't care about you
They only rejecting it cos they are the ones who have foreign currency in their homes
How many Nigerians have up to 100$ they are not using?
While almost all of them have like 100000$ cash in their houses
Buried in sockerway pits
If the bill is passed, THEY will all go to jail
That is what they care about, not the masses

Eleojo Blessing said...

Whatever

Anonymous said...

Even at that?
So you dont hope to own much dollars you worked hard for. Dont allow your present poverty blind you. Why should such rubbish bill be proposed in the 1st place? To punish people for being rich and hardworking?

YASIR said...

The Senate don't have the good of this country at heart

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