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The Senate Finance Committee has invited the Central Bank of Nigeria (CBN) to explain the rationale behind the exchange rates it used for three key projects

The Senate Finance Committee has invited the Central Bank of Nigeria (CBN) to clarify the rationale behind the trade charges it used for 3 key initiatives beneath the Presidential Infrastructure Development Fund (PIDF) being funded to the tune of billions of naira by the Nigeria Sovereign Investment Authority (NSIA) throughout the nation.

The PIDF was earmarked from greenback denominated Sovereign Wealth Fund (SWF) to partially fund the Lagos-Ibadan Expressway, Second Niger Bridge, Abuja-Kano Expressway, East-West Road and Mambilla Hydro Project with the primary three initiatives already funded to the tune of N163.eight billion.

Senator Solomon Adeola (APC, Lagos West), chairman, Senate Committee on Finance, over the weekend invited the CBN throughout an interactive session with the Managing Director of NSIA, Mr. Uche Orji and his administration workforce the place the committee was informed that the contracts for the initiatives have been denominated in naira and CBN trade charge for the disbursed fund was N325 to a greenback as a substitute of the official charge of N305.

“This committee will like to see the contract documents for these projects and why the exchange rate for the dollar to naira was at N325 to a dollar instead of the official rate of N305 in a government to government transaction for these key infrastructure projects. We are not indicting NSIA or conducting an investigation or probe of CBN but we like to know the reason why this different rate was used.” Senator Adeola acknowledged whereas inviting CBN to seem along with NSIA, as we speak.

The senator lauded the NSIA for what it has accomplished to date in phrases funding healthcare, schooling, infrastructure and funding in fertiliser manufacturing however urged for warning and extra funding in various areas to develop the $1.5 billion Sovereign Wealth for its contributors particularly the Federal Government, state governments, native governments and FCT to reap the advantages of its institution.

Senator Ayo Akinyelure (PDP, Ondo Central) whereas supporting the necessity for clarifications from CBN on the trade charges of greenback to naira in these transactions acknowledged that NSIA could have been shortchanged in these transactions including that the charges could clarify the seeming gradual progress, delay and non completion of those key initiatives as some points will likely be primarily based on import of supplies that are denominated in {dollars} bought at greater BDC charges.

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1 Comment

  1. Correct

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