THE Senate has summoned the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso over the free fall of the Naira and hyperinflation.
The summon on Wednesday was through its Committee on Banking, Insurance, and Other Financial Institutions headed by Senator Adetokunbo Abiru.
The governor and his team were asked to appear on Tuesday next week to explain the state of the economy and the free flow of the Naira at the forex market.
The Committee at a meeting on Wednesday expressed concern over the endless weakling of the Naira that saw it rise to N1,520 to a US dollar as of Wednesday.
Speaking with journalists after the meeting held behind closed doors at the National Assembly, Senator Abiru said the state of the economy, especially the inflation index was of great concern to the lawmakers.
He said “We have held a meeting this afternoon essentially to focus on the direction of the Nigerian economy.
“We are all living witnesses of what is going on.
“Underlining the major issue of the economy is the way the inflation index has been and of course, it is a major concern to us.
“We have deliberated among ourselves. Critical issues were addressed and we believe that the next line of action is to summon the governor of the Central Bank on Tuesday at 3 O’clock to brief us properly on the state of the economy.
“That we have resolved and will communicate to the Governor of the Central Bank after which we will have further communication with members of the press.”
Nigeria’s naira dropped to a record low against the dollar on the official market on Tuesday, FMDQ Exchange data showed on Wednesday, slipping below rates on the unofficial parallel market in intra-day trades.
The naira fell as low as 1,531 to the dollar during trading on Tuesday, FMDQ data showed, compared with 1,460 naira quoted on the parallel market. The currency later closed at 1,482.57 naira on the official market, according to FMDQ.
On Wednesday the currency eased on the forwards market, with traders quoting the dollar as low as 1,650 in a year.
The latest fall occurred after market regulator FMDQ OTC Securities Exchange said its methodology for calculating closing rates on the currency was revised last Friday to include more data, and that the levels on its computation had changed.
The naira has lost around 40% since the start of the year. Its official exchange rate has been drifting towards the parallel market level as foreign currency shortages in the West African nation funnel demand to unofficial sources.
The Central Bank has warned lenders about underreporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.