Senate Advances Bill To Ban Use Of Foreign Currencies In Nigeria
A bill seeking to prohibit the use of foreign currencies for financial transactions in Nigeria has passed its first reading in the Senate.
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,” the legislation aims to promote the exclusive use of Nigeria’s local currency, the naira, in all payments, including salaries.
The bill, sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation, is part of efforts to curb the reliance on foreign currencies like the US dollar and British pound sterling in domestic transactions.
Speaking on the bill, Senator Nwoko described the pervasive use of foreign currencies as a “colonial relic” that undermines the value of the naira and hampers Nigeria’s economic sovereignty.
“The use of foreign currencies in our financial system perpetuates economic instability and weakens the naira. It is time we prioritise our own currency to achieve true economic sovereignty,” Nwoko stated.
The proposed legislation seeks to address concerns about the depreciation of the naira and foster greater reliance on local currency to enhance economic stability.
The bill’s passage through its first reading marks the beginning of legislative deliberations on the proposal. It will undergo further scrutiny and debate during subsequent readings and committee reviews before a final decision is made.
If enacted, the law could significantly transform financial practices in Nigeria by mandating the use of the naira for all forms of remuneration and transactions, reinforcing efforts to stabilise the nation’s currency and reduce reliance on foreign exchange.
