Nigerian Lawmakers Advocate Adoption Of Chinese Yuan To Safeguard Naira

In a bid to fortify the Nigerian economy against the volatility of the Naira and enhance trade relations, the House of Representatives has pushed for the adoption of the Chinese Yuan as an official foreign exchange reserve currency.

This initiative emerged following a motion presented by Jafaru Leko, the representative of Bogoro/Dass/Tafawa Balewa Federal Constituency, Bauchi State, during Wednesday’s plenary session.

Leko stressed the urgency of the situation, highlighting the instability in the Nigerian economy due to significant fluctuations in the Naira’s value. He referenced recommendations by the International Monetary Fund, emphasizing the need for diversification in foreign exchange reserves for developing countries like Nigeria.

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“Adopting the Chinese Yuan as an additional foreign exchange reserve currency might mitigate the adverse effects of Naira depreciation, reduce exchange rate risks, and bolster Nigeria’s economic stability,” remarked Leko.

Moreover, the lawmaker pointed out China’s pivotal role in global trade and the widespread recognition of the stable Chinese Yuan. He emphasized that embracing the Yuan could not only shield Nigeria from currency devaluation but also strengthen economic ties with China, a crucial trading partner.

Responding to the motion, the House tasked its committees on Banking Regulations, Banking and Other Ancillary Institutions, to collaborate with the Central Bank of Nigeria.

Their goal is to explore requisite policies, mechanisms, and partnerships necessary for the integration of the Yuan, with a mandate to report back within four weeks for further legislative action.

In a parallel effort to ensure consumer rights and quality services, the House also addressed issues of unjustified charges by telecommunication companies. Emmanuel Ukpong-Udo, representing Ikono/Ini Federal Constituency, Akwa Ibom State, presented a motion urging the Nigeria Communications Commission to compel registered network providers like MTN, Glo, Airtel, and 9mobile to deliver consistent and quality communication services.

The motion further called for the elimination of wrongful charges on calls that misdirected or failed to connect, directing the Committee on Communications to oversee compliance with these directives.

Speaking on the House’s decisions, a representative stated, “It is crucial to protect our economy from uncertainties while also ensuring that Nigerian consumers receive fair and quality services from telecommunication providers.”

The resolutions signal a proactive approach by the House to address economic concerns and protect consumer rights amidst Nigeria’s evolving economic landscape.