A bill to prohibit using foreign currencies for payments and transactions within Nigeria passed First Reading on the Red Chamber floor on Tuesday, reaffirming the Naira’s dominance and restoring confidence in the currency.
The bill was sponsored by Senator Ned Munir Nwoko, who also serves as the head of the Senate Committee on Reparations and Repatriation and 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.”
He described the widespread use of foreign currencies, such as the US dollar and the British pound sterling, for domestic transactions as a colonial remnant and pointed out that the current pattern devalues the Naira.
“The use of the Dollar, Pound Sterling, and other foreign currencies for domestic transactions continues to hinder Nigeria’s economic independence.”
To force foreign buyers to buy Nigerian currency and increase its value, the proposed legislation required that salaries, payments, and all domestic financial operations—including those involving expatriates—be carried out in Naira.
Additionally, it mandated that crude oil sales and other exports be sold only in the Naira denomination.
If the Bill becomes law, it would outlaw the parallel market, or informal forex, which Senator Nwoko claimed threatened the legitimate economy.
The new legislation would also promote economic independence, according to the MP who represents Delta North.
“This bill is about reclaiming our monetary independence and fostering national pride by prioritizing the Naira for domestic and international transactions.”
Senator Nwoko compared it to the Dirham, the currency of Morocco, pointing out that the North African nation’s currency has been boosted by its exclusive usage for domestic financial operations.
“Nigeria, with its vast natural resources and dynamic population, has the potential to achieve and surpass Morocco’s success.”
CBN alerts Nigerians on fake foreign currency transfers
Legit reported that the CBN has alerted Nigerians, warning them against fraudulent SWIFT messages and unsubstantiated claims about foreign currency transfers allegedly held up in Nigerian banks or CBN itself.
The apex bank expressed readiness to contact law enforcement agencies to probe and prosecute persons making such claims.
The warning comes amid a surge in petitions from individuals, law firms, government agencies, and private entities claiming that foreign currencies sent to their accounts by foreign organisations have yet to be credited.
