The Senate passed a bill on Tuesday aimed at prohibiting the use of foreign currencies for payments and transactions within Nigeria. This proposed legislation seeks to ensure that all transactions, including salaries, are conducted in naira, with the goal of eliminating discriminatory practices and strengthening confidence in the local currency.
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 for Other Related Matters,” mandates that exports be paid for in naira.
Sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation, the bill addresses the widespread use of foreign currencies in Nigeria’s financial system, which Nwoko claims undermines the value of the naira and perpetuates economic challenges.
He characterized the reliance on the dollar, pound sterling, and other foreign currencies for domestic transactions as a colonial relic that hinders Nigeria’s economic independence. The bill aims to “prohibit salaries, transactions, and payments in foreign currencies, ensuring all workers, including expatriates, are paid in naira.”
Nwoko also proposed that crude oil and other exports be sold exclusively in naira, compelling international buyers to purchase the currency, thereby increasing its demand and value. He argues that this law will position the naira as the central currency for all financial operations, reinforcing its dominance in the economy.
Furthermore, he stated that the bill would abolish informal currency markets that undermine the formal economy and discourage unethical practices such as round-tripping by banks.
