‘Let’s see effect on the naira’ — rep calls for closure of Nigerians’ dom accounts
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.
I am not the CBN Governor but at this moment, Im of the opinion that CBN should mandate that all dorm 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. Your opinion
— Ibrahim B Obanikoro (@Jidekoro) September 28, 2021
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:
That's when Meffy will know there are limits to his nonsense. The people that will come for his head with alacrity. Oh, by the way, you lied about not being able to open a foreign currency account in Western countries. 5 mins of Google would have helped you here. https://t.co/MK5OKVPMUe
— Mark Amaza (@amasonic) September 29, 2021
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These are ideas we get when we have airheads in power.
You are not thinking of increased productivity to enhance balance of trade, not looking at creating enabling environment for FDIs, not looking at increase in exports for balance of trade, na blocking of Domain. O ma shey oo https://t.co/tWrppHBFnl— President Papi Chulo (King of Girls) (@oluobededom) September 29, 2021
Member of house of representatives making false assertions with such full confidence, and making a recommendation based on it. God help us all. https://t.co/m6dmQNXjOj
— 0xManasseh (@knightofdelta) September 28, 2021
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This idea can work 👍🏾, but you can’t just close people dom account, but only mandate them to withdraw all their $ from the account within let’s say 4month max.
AdvertisementWill the North and Naija Elites allow you destroy bank & BDC? 😌🥴
The we have talk about Foreign traders and FDi?
Advertisement— Orisha (@OrishaYoruba) September 28, 2021
Babajide Obanikoro @Jidekoro has never showed any element of brightness. Just look at his take on the fallen Naira. Thinking like a beer palour operator 🤣🤣🤣😂 https://t.co/RSk41U7dL3
— Olayinka Oluwakuse (@OmoEkoPataaki) September 29, 2021
It’s exactly how Buhari’s border closure became a permanent policy based on “close it and let’s see the effect”. Then a whole industry of Buharideens will emerge to support, encourage and downplay the consequences. https://t.co/rCO8v4BxSV
— Mitchell Obama (@Ambrosia_Ijebu) September 29, 2021
Stop lying. In the UK legal residents can open dollar & euro accounts.
Maybe if you refund all those dollars your father allegedly siphoned through, Silva McNamara, the company where you and your brother Gbolahan, are directors, the naira would begin to see some tractions. https://t.co/IGrSDWrOcI
— Nicholas 'The Brave' Ibekwe (@nicholasibekwe) September 29, 2021
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.
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 (1/2)
— Ibrahim B Obanikoro (@Jidekoro) September 28, 2021
“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].”
My tweet was meant to spark a dialogue and conversation to help formulate a bill l’m working on. Have ideas, reach me on [email protected]
— Ibrahim B Obanikoro (@Jidekoro) September 28, 2021
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.
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.