According to Punch Newspaper, The Nigerian Senate has passed a bill for its first reading that seeks to ban the use of foreign currencies for payments and transactions within the country. This proposed legislation aims to ensure that all payments, including salaries and transactions, are conducted exclusively in naira.
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 was introduced by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
According to Senator Nwoko, the pervasive use of foreign currencies such as the dollar and pound sterling in domestic transactions undermines the value of the naira, contributing to Nigeria’s economic challenges. He described this practice as a lingering colonial relic that has hindered the country’s economic independence.
The proposed legislation also seeks to mandate that all crude oil and other exports be sold exclusively in naira. International buyers would be required to purchase the local currency, thereby driving its demand and boosting its value.
Senator Nwoko emphasized that the bill aims to establish the naira as the central currency for all financial operations in Nigeria, reinforcing its dominance in the economy. Additionally, the bill seeks to abolish informal currency markets that facilitate unethical practices such as currency round-tripping, while encouraging transparency within the formal financial system.
If passed, the law would also ensure that salaries, including those of expatriates working in Nigeria, are paid in naira, promoting uniformity and eliminating discriminatory practices in the country’s financial landscape.
The bill, if enacted, is expected to strengthen confidence in the naira, curtail economic malpractice, and position the local currency as a critical tool for Nigeria’s financial sovereignty.