REPS MOVE TO BAN USE OF FOREIGN CURRENCIES

The House of
Representatives, yesterday, moved to ban the use of foreign currencies in local
and domestic transactions in Nigeria. This was sequel to a motion brought to
the floor of the House by Hon Nadu Karibe, representing Bayelsa State.

Karibe who
led the debate had argued that “every country has its currency which serves as
a means of exchange, a symbol of identity, a source of pride and a sign of
independence and economic stability.”

He also
observed that “without equivocation, the Naira is the only means of exchange
for local and domestic transactions in Nigeria.  There is a growing trend
in the use of foreign currencies, especially the US Dollar for payments of
school fees, hotel bills, real estate, rent and purchase in bars, night clubs,
luxury good shops, in Nigeria.”

He further
argued that “this trend has led to the high demand of these foreign currencies,
especially the US Dollars in Nigeria.”
Speaker of the House, Hon Aminu Tambuwal at this juncture asked members to make
their contributions.

In his
contribution, Hon Warman Ogoriba said:  “I was in South Africa where I
wanted to pay my hotel bills in dollars and it was rejected. Honestly I was
pleasantly surprised because here Nigerians freely use the dollar. I urge
members to support the motion and the CBN to ban the use of foreign currencies
in local transactions”.

Speaking in
the same vein, Hon Buba Jibrin representing Kogi State said: “In my opinion
this motion is very timely. In foreign lands we are made to change dollars into
local currencies using our passport as an identification mark. But here in
Nigeria even in our shopping malls dollars are freely used and that is wrong.
It is only the high and mighty that spends Dollars the way they like.”

Speaking
against the motion, Hon Aminu Sulayman said:  “I see this motion as a
glorified one as only inconsequential number of Nigerians use the dollar in
Nigeria. This matter should be left for the appropriate authority to handle or
the motion should be thrown out through the window.”
The Speaker, Aminu Tambuwal  quickly pointed out to Sulayman that there
was no window in the chamber.

Also in his
contribution, Hon Ali Madaki representing Kano said: “If Nigeria is really
serious and wants investors, we need to use Dollars. If we look at Dubai today
Dollars are openly used and just in the 1970s they came here to borrow money
from us. They wanted to borrow $10 million but the then Obasanjo administration
was told the place was a desert but look at Dubai today, is it not better than
Nigeria?  We need investors to grow our economy.”

Hon 
0gbuefi Ozomgbachi, however, in his contribution said: “There is an existing
Act of Parliament that forbids Nigerians from using foreign currency for marketing
purposes.”

But while
rounding up the debate, Hon Karibe said: “This motion is not against the sale
of foreign currencies what it is against is its usage in local and domestic
transactions in Nigeria.”

This
attracted a loud ovation from members and when the Speaker put it to a voice
vote it was unanimously adopted.”

Why Excess Crude is not designated in dollars — CBN

Meanwhile,
the Central Bank of Nigeria, CBN, yesterday gave an insight into why the bank
does not designate Excess Crude account in dollars, saying it was constrained
by the country’s constitution.

Answering
questions, yesterday, when he appeared before Senator Bassey Otu-led Senate
Committee on Banking, Insurance and other Financial Institutions, CBN Deputy
Governor, Suleiman Barau, said the apex bank was still discussing the matter
internally to ensure a well advised position. Mr Barau who appeared before the
committee to be screened for another term, disclosed that the bank was making
efforts to ensure that the banks were strong enough to support the real sector
for national development.

Barau who
told the Senate that the Revenue Mobilisation Allocation and Fiscal Commission
advised the apex bank against designating the Excess Crude Account in dollars
said: “This is a constitutional constraint. When it was first mooted, the
Revenue Mobilisation Allocation and Fiscal Commission informed us that the
Constitution only recognizes the naira as the unit of account.”

He also said
that if the apex bank must perform effectively, it must be allowed to maintain
its financial autonomy as against the proposed amendments to the CBN to subject
its budget to the scrutiny of the National Assembly.

Barau argued
that such autonomy was in line with the spirit of the law and international
best practices, saying, “we believe that the National Assembly can make inputs
in our budget through oversight. You can tell us what to do and what not to
do.”
Responding to a question on  interest rates, Barau stressed that the
lending rates by banks were still high because of the adverse consequences that
lower rates would cause to the rate of inflation at the moment.

On
allegation that  CBN does not patronize NSPMC for the printing of naira
notes, he described it as untrue, adding that only a residual quantity of the
3.2 billion notes required by the CBN were printed by a foreign company.

According to
him: “We patronize Mints. The company printed 2.8 billion notes in 2011 and 2.6
billion notes in 2013 out of total 3.2 billion notes the CBN printed.”

He explained
that the company made a total profit of N2 billion in 2012, just as he
said  that it was a matter of capacity and not patronage.

Earlier in
his remarks, Senator Otu advised that if the banking sector must remain the
backbone of economic development in the country,  there was the need to
get the CBN inject the necessary support, adding that the committee is saddled
with  the responsibility of screening the nominee for a second tenure as
Deputy Governor in the apex bank.