Rep. Lar expressed fear that the Dollar to Naira exchange rate could go as high as N1000 by December, should nothing be done urgently to nip its free fall in the bud.
The House of Representatives has stepped down a motion calling on President Bola Ahmed Tinubu to unify the country’s exchange rate in a bid to stabilise the naira, as promised during the electioneering campaign.
The motion was sponsored by Rep. Beni Lar (PDP, Plateau), who noted that despite the promise of the new administration during the campaigns and upon inauguration to stabilise the exchange rate at N200 to $1; it has risen to 815 naira, from $1 to 0.80Kobo in July 1980, and $1 to 670 naira, in July 2022.
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“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 suffer tuition fees increase by over 60 percent, 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 the prices of goods and services. This has worsened the inflationary situation and the cost of doing business in Nigeria. The high prices of goods and services are taking a huge toll on the average Nigerian, making life 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.”
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In his contribution, Rep. Lawan Ali (APC, Yobe) countered the motion by saying “I have never heard of the President promising to make the dollar equal to N200. The President took the bull by the horns to remove the subsidy. We must commend his efforts and not by way of challenge. We need to support him.
We should be fair to this current government. It’s too early to judge the performance of the government about the dollar. This government inherited insecurity. If people are not encouraged to come and invest, there is no way it (the economy) will grow. We should give this government time before assessing it.”
On his part, Rep. Leke Abejide explained that the exchange rate cannot be fixed by fiat but by market forces. “It has to be done by production and not importation. I believe the government is in the right direction,” he added.
