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‘Let’s see effect on the naira’ — rep calls for closure of Nigerians’ dom accounts

‘Let’s see effect on the naira’ — rep calls for closure of Nigerians’ dom accounts
September 29
17:56 2021

Ibrahim Obanikoro, a member of the house of representatives, has suggested that the Central Bank of Nigeria (CBN) close all domiciliary accounts for the next one year.

The naira has depreciated to N575 against the US dollar at the parallel market while trading at N411/$1 at the official rate — the investors and exporters (I&E) FX window.

In a tweet on Tuesday, Obanikoro, lawmaker representing Eti-Osa federal constituency of Lagos State, said he was seeking ideas and opinions that would help “save the naira”.

“I am not the CBN Governor, but at this moment, I’m of the opinion that CBN should mandate that all dom accounts be closed for the next 12 months. Let’s see the effect on the Naira. After all, you can’t go to any of the Western world and open a foreign currency account,” the tweet reads.

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Obanikoro’s tweet was followed by public condemnation and outcry as many said this would not reverse the slide of the naira.

Below are some reactions to the lawmaker’s tweet:

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Reacting to the backlash, the lawmaker said that he was aware that closing domiciliary accounts won’t solve the problem.

He explained that he only meant to spark conversation to get ideas for a bill he was working on.

“Thank you all for your tweets, I’m fully aware that closing dorm acts isn’t the solution to the problem. Only solution is to look inwards and address certain key issues such local production, exportation and reduce importation, get our refineries working etc,” he wrote.

“My tweet was meant to spark a dialogue and conversation to help formulate a bill I’m working on. Have ideas, reach me on [email protected]

2 Comments

  1. Folake
    Folake September 30, 08:21

    Does Obanikoro want answers on how to strengthen the Naira? He should take an introduction to basic Economics at secondary school level: He will find therein all the answers he needs. But, he will not find his misguided and dangerous “solution” of closing the dom accounts in any book, except in Economic History of failed socialist states. What he proposes is to destroy the little trust left to investors in our economy.

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  2. Folake
    Folake September 30, 09:32

    The depreciation of the Naira is caused by the CBN policy of keeping several rates, which encourages arbitrage which means that the clever people who are able to obtain forex at the official rate will sell it at black market (or BDC rate, if you prefer) making an humongous profit in the process.

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