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Senate will not Pass the ‘regressive proposal’ to Punish FOREX Owners

BellaNaija.com

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Senate-FloorThe Senate has said that it will reject a proposal to punish people for keeping foreign currency for more than 30 days.

Chairman, Senate Committee on Media and Public Affairs, Senator Aliyu Abdullahi (APC-Niger) said this in a press statement on Monday in Abuja.

“We are surprised 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 per cent of the amount of the foreign currency held in their possession for more than 30 days.

The senate 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 out rightly rejected by its members,” he said

Abdullahi described the measure as disruptive and counterproductive and will 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,” he added.

He said that a market-oriented exchange rate policy was the best recipe for guiding the operations of the foreign exchange market which would ensure the supremacy of market mechanisms in efficiently allocating the scarce forex resources.

Abdullahi added “we will continue to work with the Executive to halt the worsening recession and return to economic growth.”

The Central Bank of Nigeria (CBN), had, in a document titled “Working Paper” shared to members of the Chartered Institute of Bankers of Nigeria (CIBN), sought powers to amend the Foreign Exchange, Monitoring and Miscellaneous Exchange Act (FEMM) which was signed into law in 2014 and allows for foreign investors to import and repatriate money to and fro Nigeria freely.

Notable among the amendments to be made was that possession of foreign currency for more than 30 days without depositing it in the bank will make one liable to 2 years imprisonment or a fine of 20% of the amount of the foreign currency involved.

3 Comments

  1. bussy

    November 22, 2016 at 10:50 am

    Yea we know. since you guys are the forex owners.

  2. GANNY OGUNSHAKIN

    November 22, 2016 at 2:55 pm

    Thank you Nigeria Senate for killing the outrageous proposal from the Central bank of Nigeria. When has it become an offence for someone to keep their own money wherever they want? Fellow Nigerians, exchange your worthless Naira for the dollar, Euro or the Pound Sterlings and do keep it wherever you want. without any fear of “yeye Nigeria government trying to criminalize your behavior. President Mohammodu Buhari. Now you have it. Nigerians don’t trust you, and your economic policies. No matter what you do, the exchange rate will not come down to what it was when you became president. You know it and we all know it. Fire every member of your economic team and start from the scratch. They have proven to be a colossal failure. A word is enough for the wise. I ‘ m just saying.

  3. Ibrahim

    November 23, 2016 at 11:10 pm

    Well said by The most Distinguished Nigerian Senate. It is only wise and logica, matter of fact, a welcome development, Like my brother Ganny said, since when has it become a crime to keep your own sweat?? instead of the CBN to seek for stimulating monetary and fiscal policies that will cushion the effects of this disastrous situation our dear Nigeria is soaked in at the moment, they are busy clamping down on petit traders striving to hustle N1 or N2 on a dollar. When we know very well the millions of Dollars CBN is allocating to its circle.. The deals going on, on a daily basis where few individuals have access and are stacking up, of course will create virtual scarcity,which creates panic and scarcity for inflation to thrive,. DSS and SSS know very well who to go after,they know who is getting allocation from CBN so please save us the theatrics. i don’t know of any country that has two different exchange rates but Nigeria. yes there may be a slight margin but never in double digits not less triple. if we do not address this matter by completely deregulating the sector then i am sorry but the situation will continue to remain insolvable. How can a trader buy his Dollar for $450 and be forced to sell it for $400? Who will bare the difference and who will bare the loss? This is authoritarian and we are supposed to be running a democracy. smh

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