Ibrahim Babajide Obanikoro, a member of the House of Representatives, has proposed that the Central Bank of Nigeria forcibly close domiciliary accounts holding foreign currencies in order to stop the naira from falling further.
Mr Obanikoro, who is now the Member of Parliament for Lagos State’s Eti Osa Federal Constituency, made the suggestion on Twitter on Tuesday.
“I am not the Governor of the Central Bank of Nigeria, but at this time, I believe the CBN should order that all dorm accounts be closed for the next 12 months. Let’s watch how the naira reacts.
Mr Obanikoro tweeted, “After all, you can’t create a foreign currency account in any Western country.”
Despite questionable initiatives implemented by Governor Godwin Emefiele of the Central Bank of Nigeria (CBN) to stem the Naira’s freefall, the currency has continued to decline.
Mr Emefiele put an end to the sale of foreign currency to Bureau De Change (BDC) operators across the country in July.
This contentious action resulted in the dollar’s unavailability, causing the naira’s value to plummet.
The Naira has been losing value against the dollar week after week, and is currently selling at around N580 to a dollar on the parallel market, while the official rate is N412 to a dollar, according to a CBN directive.
Imported products such as milk, sugar, rice, electronics, vehicles, and other necessities have seen price increases due to the naira’s depreciation.