Nigerian Senate Moves To Ban Use of Dollar, Other Foreign Currency For Transactions

A bill that proposes to amend existing laws to ban the use of foreign currencies in transactions and payments within Nigeria’s borders has been introduced by the Senate and has successfully passed its first reading.

The bill seeks to stop the use of foreign currencies for payments and transactions within the country.

The bill, which is 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,” was sponsored by Senator Ned Munir Nwoko, who is the Chairman of the Senate Committee on Reparations and Repatriation.

He posits that if passed, the bill will position the Naira as the central currency for all financial operations, reinforcing its dominance in the economy.

The proposed legislation, stipulated that all payments including salaries and transactions are made using the country’s currency – Naira.

The sponsor of the bill, Senator Nwoko, contends that its passage will eradicate discriminatory practices and bolster confidence in the Nigerian Naira.

This includes making it mandatory for exports to be paid for in Naira.

According to Nwoko, the widespread use of foreign currencies in Nigeria’s financial system undermines the value of the Naira, perpetuating economic challenges.

He described the use of the Dollar, Pound Sterling, and other foreign currencies for domestic transactions as a “colonial relic that continues to hinder Nigeria’s economic independence.”

The bill will also prohibit salaries, transactions, and payments in foreign currencies, which ensures that all workers, including expatriates, are paid in Naira.

Other proposals in the bill include the abolishment of informal currency markets that undermine the formal economy and encourage unethical practices such as round-tripping by banks.