Senate Proposes Ban on Foreign Currency Transactions in Nigeria

The Nigerian Senate has advanced plans to reinforce the country’s monetary sovereignty by introducing a bill to prohibit the use of foreign currencies for payments and transactions within Nigeria. The proposed legislation, which passed its first reading, aims to restore confidence in the naira and promote its exclusive use in the nation’s financial system. 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,” the bill is sponsored by Senator Ned Nwoko (PDP, Delta North), Chairman of the Senate Committee on Reparations and Repatriation.

Senator Nwoko highlighted the dominance of foreign currencies, such as the U.S. dollar and British Pound, in Nigeria’s financial system, which he described as a “colonial hangover” undermining the naira’s value. He stated that despite gaining political independence in 1960, Nigeria has yet to achieve economic independence. The bill seeks to outlaw foreign currency payments for salaries, goods, and services, ensuring that all financial transactions within Nigeria are conducted in naira. It also mandates the use of naira for payments related to exports, such as crude oil, requiring international buyers to purchase the currency, thereby increasing its demand and value.

source: reportafrique.com

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