The All Progressives Congress (APC) and the Labour Party (LP) have both expressed support for the ongoing legislative effort to ban the use of foreign currencies for local transactions in Nigeria.
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 Other Related Matters,’ passed its first reading in the Senate two weeks ago.
The bill, which aims to ensure that all payments, including salaries, are made in naira, seeks to reduce the influence of foreign currencies in Nigeria’s economy and boost confidence in the local currency.
It was introduced by Senator Ned Nwoko, the Chairman of the Senate Committee on Reparations and Repatriation.
Nwoko expressed concerns that the pervasive use of foreign currencies in domestic transactions has contributed to the depreciation of the naira and hindered Nigeria’s economic progress.
The National Publicity Secretary of LP, Obiora Ifoh, voiced strong support for the bill, criticizing the growing ‘dollarisation’ of the economy.
Ifoh pointed out that the use of foreign currencies by wealthy individuals and companies was damaging Nigeria’s economic stability.
He noted that it was unnecessary for businesses to pay salaries in dollars, as the national budget is conducted in naira.
He also emphasized that the Naira should be restored to its rightful place as the country’s primary currency, highlighting the example of China, where all transactions are conducted in the yuan.
Although Ifoh acknowledged that foreign currencies cannot be entirely eliminated, he advocated for a law that would penalize individuals and businesses found hoarding or transacting in foreign currencies.
He argued that such a law would strengthen the naira and help reduce the dominance of foreign currencies.
The APC also supported the proposed legislation, with the party’s National Publicity Director, Bala Ibrahim, expressing his approval.
Ibrahim argued that using foreign currencies for local transactions diminishes the value of the naira and undermines its status.
He stated that while people may still carry foreign currencies for personal use, the move would help restore the naira’s prestige and stability in the long run.
He also emphasized that the law should be implemented thoroughly to ensure its success.
