The House of Representatives, presided over by Speaker Tajudeen Abbas on Wednesday, adopted a motion urging banks to adhere to the Central Bank of Nigeria’s policies on excess long foreign exchange and Net Open Position (NOP) limits.
This motion, brought forward by Babajimi Benson, the member representing Ikorodu Federal Constituency, highlighted the CBN’s regulatory role in monetary policies and its authority to issue directives to commercial banks and financial institutions. Benson emphasized the necessity for the CBN Governor to brief relevant National Assembly Committees semi-annually and provide periodic reports on economic performance, as stipulated by Section 8(4) and (5) of the CBN Act.
Benson noted concerns about the rising dollar-to-naira exchange rate and attributed it to various market forces and government economic policies, including the liberalization of the dollar. He criticized banks for holding onto foreign exchange rather than lending it out, contributing to speculation and exacerbating economic challenges. Benson underscored the importance of enforcing CBN directives to mitigate adverse economic effects.
Consequently, the House mandated its Committees on Banking Regulations and Banking Institutions to conduct an investigative hearing into non-compliance by banks and financial institutions with CBN directives on NOP limits. Additionally, the Committee on Legislative Compliance was tasked with ensuring the full implementation of these directives.