A bill seeking to prohibit the use of foreign currency in Nigeria has scaled first reading in the Senate.
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,” was sponsored by the Chairman of the Senate Committee on Reparations and Repatriation, Senator Ned Nwoko.
The proposed legislation is aimed at ensuring all payments including salaries and other transactions are done using the local currency, the Naira.
According to Senator Nwoko, the widespread use of foreign currencies in the country’s financial system undermines the value of the Naira, which he said, perpetuates economic challenges.
The lawmaker described the use of the Dollar, Pound Sterling, and other foreign currencies for transactions in Nigeria as a colonial relic that continues to hinder Nigeria’s economic independence.
He argued that such practices undermine the value of the Naira, perpetuating economic challenges and weakening Nigeria’s monetary independence.
“The extensive use of foreign currencies in our financial transactions continues to erode the value of the Naira and fosters a dependency that hinders Nigeria’s economic sovereignty.
“This legislation is a step toward restoring confidence in our local currency and reducing unnecessary pressures on our economy,” Nwoko stated.
If enacted, the bill will prohibit the use of foreign currencies for salaries, bonuses, and other forms of remuneration, as well as for local transactions. It aims to promote the adoption of the Naira, strengthen the economy, and encourage the use of the country’s own resources.
While the proposed law has garnered support for its potential to boost the Naira’s value and promote economic stability, it is also expected to face scrutiny.
Critics may raise concerns about the bill’s feasibility, particularly given Nigeria’s heavy reliance on foreign currencies in international trade, remittances, and private sector operations
Eighteen-Eleven Media