Senate moves to ban foreign currency transactions in Nigeria
The Nigerian Senate has taken a significant step towards economic reform by introducing a bill aimed at banning the use of foreign currencies for transactions within the country.
The bill, which passed its first reading on Monday, seeks to amend the Central Bank of Nigeria Act of 2007, with provisions to prohibit the use of foreign currencies such as the US Dollar, Pound Sterling, and Euro in domestic transactions.
The bill, titled “A Bill for an Act to Alter the Central Bank of Nigeria Act, 2007, No. 7, to Prohibit the Use of Foreign Currencies for Remuneration and for Other Related Matters,” is being led by Senator Ned Munir Nwoko, the Chairman of the Senate Committee on Reparations and Repatriation.
Nwoko argued that the dominance of foreign currencies in Nigeria has exacerbated the country’s economic challenges and undermined the Naira’s value. He described the use of foreign currencies as a “colonial relic” that continues to impede Nigeria’s economic independence.
The proposed legislation mandates that all payments, including salaries and wages, be made in Naira, irrespective of the nationality of the recipients. This includes expatriates who currently receive their salaries in foreign currencies. According to Nwoko, the bill seeks to eliminate discriminatory practices in the workforce and reduce the economic inequalities caused by foreign currency usage.
Nwoko also pointed out that the widespread use of the Dollar and other foreign currencies has eroded confidence in the Naira and contributed to Nigeria’s inflationary pressures.
He emphasized that requiring export payments to be made in Naira will compel international buyers to purchase the currency, thereby boosting its demand and strengthening its value.
“We cannot continue to allow foreign currencies to dominate our economy,” Nwoko stated.
Proofreading by Uchechi Ojo, Sub-editor at NeptunePrime.
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