A new bill that seeks to prohibit the use of foreign currencies, such as the US Dollar and British Pound, for domestic transactions in Nigeria has successfully passed its initial reading in the Senate.
The bill, titled “A Bill for an Act to Amend the Central Bank of Nigeria Act, 2007, No. 7, to Ban the Use of Foreign Currencies for Salaries and Related Matters,” was introduced by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
The proposed bill aims to make the Naira the exclusive legal tender for all payments, wages, and financial dealings within Nigeria.
Senator Nwoko, in presenting the bill, expressed his concerns about the prevalent use of foreign currencies in the nation’s financial system, calling it a “colonial relic.”
He argued that such practices diminish the value of the Naira, contributing to economic difficulties and reducing Nigeria’s financial autonomy.
“The widespread adoption of foreign currencies in our transactions weakens the Naira’s value and creates a dependency that obstructs Nigeria’s economic independence. This legislation marks a step towards restoring confidence in our national currency and alleviating unnecessary pressures on our economy,” Nwoko explained.
If passed, the bill would make it illegal to use foreign currencies for wages, bonuses, or other forms of payment, as well as for domestic business transactions. The bill’s goal is to foster greater reliance on the Naira, strengthen the economy, and promote the use of Nigeria’s own resources.
While the bill has received support for its potential to enhance the Naira’s value and contribute to economic stability, it is likely to face opposition. Critics may raise questions about the bill’s practicality, given Nigeria’s heavy reliance on foreign currencies for international trade, remittances, and the operations of the private sector.
