Senate Moves To Stop Use Of Foreign Currencies In Nigeria
2 years ago 2 min read
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In a move to restore confidence in the Naira and reinforce its dominance, a Bill to prohibit the use of foreign currencies for payments and transactions within Nigeria passed First Reading on the floor of the Red Chamber on Tuesday.
Tagged “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,” it was sponsored by Senator Ned Munir Nwoko, who incidentally is chairman of the Senate Committee on Reparations and Repatriation.
Describing as a colonial relic, the widespread use of foreign currencies like the US Dollar and British Pound Sterling for domestic transactions, he noted that the prevailing trend undermines the value of the Naira.
“The use of the Dollar, Pound Sterling, and other foreign currencies for domestic transactions continues to hinder Nigeria’s economic independence.”
The proposed legislation made it mandatory for Salaries, payments, and all domestic financial operations—including for expatriates—must be conducted in Naira, while Crude oil sales and other exports would be sold exclusively in the Naira denomination, compelling international buyers to purchase Nigeria’s currency, thereby driving demand and strengthening its value.
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The Bill, if passed into law, would abrogate the informal forex known as a parallel market, which Senator Nwoko maintained undermines the formal economy.
The lawmaker representing Delta North said the proposed legislation would also foster economic independence.
“This bill is about reclaiming our monetary independence and fostering national pride by prioritizing the Naira for domestic and international transactions.”
Drawing comparisons with Moroccan currency,
Dirham, Senator Nwoko noted that the use of its currency solely for domestic financial transactions has promoted the currency of the North African country.
“Nigeria, with its vast natural resources and dynamic population, has the potential to achieve and surpass Morocco’s success.”
