Reps okay bill to regulate foreign exchange market

THE House of Representatives on Wednesday passed for second reading a bill for an act to repeal the foreign exchange.

The bill sponsored by Hon Jones Chukwudi Onyereri entitled, “bill for an Act to Repeal the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap P34, Laws of the Federation of Nigeria, 2004 and Re-enact the Foreign Exchange Act, 2017 to Establish a Foreign Exchange Market and to Provide for the Regulation, Monitoring and Supervision of the Transactions Conducted in the Market; and for Related Matters (HB. 1066)”.

Leading debate on the bill, the lawmaker said that, ” this bill seeks to promote the effective regulation of the Nigeria financial industry with view to promoting financial system stability under the Central Bank of Nigeria, CBN Act, 2007 and entrenching the deepening of financial markets, which requires the necessary legal framework to ensure that the goals of stability and growth are achieved.

“The mono cultural nature of the economy has exposed the financial system to risks associated with the vagaries of movements in the foreign exchange rate and the nation’s reserves that may quickly results in systematic failure. This has made a review of this area of law imperative in light of the dynamic nature of the foreign exchange system”, he stated

Specifically, Section 5 of the proposed bill amends the extant Act to provide for authorised dealers to render returns to the CBN which must include information as to the sources of funds above $10,000.

Also, Section 22 of the proposed bill restricts outward cash flow in a manner that no person shall export foreign currency cash in excess of $50,000 or its equivalent from Nigeria.

Section 25(2) of the bill makes provision for extension of time within which authorised dealers issue certificates if capital importation and make returns to the CBN from 48 hours to 72 hours to reflect current realities.

While Section 29 of the bill provides for the operation of foreign currency domiciliary accounts by amending the extant Act to include the period and conditions for penalties upon failure to repatriate proceeds.

The bill after scaling through second reading was referred to House committee on Banking and currency, by the Speaker, Honourable Yakubu Dogara who presided over the session.

In another development, the House also passed for second reading “A Bill for an Act to Amend the National Agricultural Land Development Authority Act, Cap. N4, Laws of the Federation of Nigeria, 2004 to increase its Membership and Functions for Strategic Operations and Interests and to Vest in the Authority Powers to Establish Farm Settlements across the Country for the Purposes of Attaining Food Sufficiency and to Establish the National Farm Settlement and Youth Empowerment Agency to create a Mechanized System of Farming that will be driven by Trained Youths as a means of Creating Job Opportunities, Wealth, Commercial, Sustainable Agricultural System and to Establish Constituency Farm Schemes in all Federal Constituencies in Nigeria; and for Related Matters (HBs 458, 771 and 880)”.

The consolidated bills were sponsored by Hon Evelyn Omavowan Oboro, Hon Henry Okon Archibong and Hon Yusuf Buba Yakubu.