The Nigerian Senate has introduced a bill aimed at prohibiting the use of foreign currencies for payments and transactions within the country.
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 sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
The proposed legislation seeks to ensure that all financial transactions, including salaries, are conducted exclusively in Naira, Nigeria’s national currency.
It is also designed to bolster confidence in the Naira and address the ongoing preference for foreign currencies in the country’s financial activities.
Senator Nwoko highlighted that the widespread use of foreign currencies, such as the Dollar, Pound, and Euro, has weakened the Naira and remains a “colonial relic” that undermines Nigeria’s economic independence.
He argued that this practice continues to pose a significant challenge to the country’s financial sovereignty.
According to reports, the bill further proposes that crude oil and other exports be sold solely in Naira, requiring international buyers to purchase the currency, thus increasing its demand and value.
Additionally, the bill aims to eliminate informal currency markets that negatively impact the formal economy and encourage unethical practices, such as round-tripping by banks.
