23 July 2023

The House of Representatives has turned down a motion raised by Honourable Beni Lar concerning the government’s unification policy,  urging the Federal Government to take necessary steps to stabilize the Naira.

Honourable Lar noted that the importation of vehicles and other commodities has significantly decreased since the floating of the Naira with the single exchange rate.

She expressed her concerns over the impact of the unified exchange rates on Nigerian students studying abroad adding that the students have faced a drastic increase in tuition fees, with some experiencing an increment of over 60 per cent. As a result, the funds in their bank accounts have become insufficient to cover their school fees.

Honourable Lar also warned about the potential consequences of the current economic situation. She cautioned that it might trigger an inflationary spiral, which could plunge Nigeria into an economic recession and depression.

The motion sparked 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 ruled in favour of the opposing side, effectively rejecting the motion.

This decision is indication that the country is faces serious challenges in dealing with its currency situation and the economic implications it brings.