The House of Representatives on Wednesday rejected a motion seeking measures to stabilize the foreign exchange rate, instead the lower chamber called for market forces to determine rates.
This was in response to a motion raised by the Hon. Beni Lar concerning the government’s foreign exchange unification policy.
Lar stated that the importation of vehicles and other commodities has significantly decreased since the floating of the naira with the single exchange rate.
Expressing her concerns, the Plateau lawmaker feared the impact of the unified exchange rates on Nigerian students studying abroad.
“With the devaluation of the Naira, these students have faced a drastic increase in tuition fees, with some experiencing an increment of over 60 percent. As a result, the funds in their bank accounts have become insufficient to cover their school fees,” she said.
Lar warned of the potential consequence of the current economic situation, stressing that, it might trigger an inflationary spiral, which could plunge Nigeria into an economic recession and depression.
The motion generated a heated debate among the lawmakers. While some supported the call for intervention in the currency situation, others argued that it was premature to hold the Tinubu administration responsible for the exchange rate.
When the matter was finally put to a vote, the deputy speaker of the House of Representatives who presided over plenary ruled in favour of the opposing side, effectively rejecting the motion.
This decision highlights the challenges the country faces in dealing with its currency situation and the economic implications it brings.
