House of Representatives member, Beni Lar, has warned that the dollar rate could rise to N1000 by December 2023 if the government doesn’t intervene in the foreign exchange market.

Lar, who represents Langtang North/Lantang South Federal Constituency of Plateau State, gave the warning after moving a motion titled, “Need to stabilise Nigeria’s foreign exchange rate”, during plenary

She said the depreciation of the naira has caused hardship in Nigeria and also affected Nigerians’ schooling abroad.

According to Lar, the naira has been on a free fall against the US dollar, euro and pounds sterling despite President Bola Tinubu promising to ensure the USD and the Nigerian currency trade at N200/$1.

Narrating how the naira has been performing badly and the impact on Nigerians, Lar told her colleagues: “In July 1980, the exchange rate was $1 to 0.80Kobo, in July 2022, the rate was $1 to 670 naira, while in July 2023, the exchange rate is now $1 to 815 naira, shortly after the new administration had promised during the campaigns and upon inauguration to stabilise Nigeria’s exchange rate at N200 to $1.

In the 1980s, most of the food and products consumed were grown or produced in Nigeria. Today, the Nigerian economy is mainly dependent on importation and there lies the source of the terrible exchange rate we are now experiencing.

The importation of vehicles and other commodities has dropped, since the floating of the naira by the single exchange rate.

The impact of the unified exchange rates has made Nigerian students abroad suffer tuition fees increase by over 60 per cent, making the money in their bank accounts insufficient to pay school fees due to devaluation of the naira.”

The lawmaker in the lower chamber further stated that the appreciating foreign currencies have an impact on inflation and a hike in prices of goods and services.

“The naira has been on a rapid decline against the US dollar, euro and pounds sterling, thus leading to hike in the prices of goods and services. This has worsened the inflationary situation and the cost of doing business in Nigeria.

“The high prices of goods and services are taking a huge toll on the average Nigerian, making life unbearable.

“If this is not reversed, $1 could be exchanged for 1,000 naira by December 2023 and the current economic situation may trigger an inflationary spiral that may throw Nigeria into economic recession and depression,” Lar stated