By Fidel Ozugha
A bill to ban use of foreign currencies for payments and other transactions in Nigeria has scaled first reading in the Senate.
It is 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 Matter” is sponsored by the Chairman Senate Committee on Reparations and Repatriation, Senator Ned Munir Nwoko.
The aim of the proposed legislation is to ensure that all payments, including salaries within Nigeria are conducted in the local currency which is Naira.
Winner of CAF 2024 Best Player Award, Ademola Lookman, middle, with CAF officials
Among the huge benefits of the bill is that the local currency (Naira) will be strengthened as efforts to end discriminatory practices against it will be made. It will boost confidence of increased users of Naira as the bill when passed will abolish informal currency markets that undermine the formal economy and encourage unethical practices such as round-tripping by banks.
With this bill passed, it will then demand crude oil and other exports transactions to be exclusively done in Naira, thereby compelling international buyers to purchase the currency thus increasing its demand and value.
Sponsor of the bill, Senator Nwoko who represents Delta North in the Red Chamber, explained that the Naira has been undermined due to widespread use of foreign currencies in the country’s financial system. He described the use of the Dollar, Pound, Euro and other foreign currencies for domestic transactions as a “colonial relic.”
