The Senate has introduced a bill seeking to ban the use of foreign currencies for payments and transactions within Nigeria.
The proposed legislation, 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 bill aims to ensure that all payments, including salaries, are conducted exclusively in Naira to strengthen confidence in the local currency and address practices that undermine its value.
Senator Nwoko described the widespread use of foreign currencies such as the Dollar, Pound, and Euro for domestic transactions as a “colonial relic” that continues to hinder Nigeria’s economic independence.
“The Naira has been undermined due to the excessive reliance on foreign currencies in our financial system,” Nwoko said, emphasizing the need to restore the local currency’s integrity.
The proposed bill also mandates that crude oil and other exports be sold exclusively in Naira. This measure would compel international buyers to purchase Naira, driving its demand and boosting its value.
Additionally, the legislation seeks to eliminate informal currency markets that contribute to unethical practices like round-tripping by banks and weaken the formal economy.
The bill reflects broader efforts by the government to stabilize the economy, strengthen the Naira, and promote Nigeria’s financial sovereignty.