The Nigerian Senate has passed the first reading of a new bill aimed at prohibiting the use of foreign currencies, including the US Dollar and British Pound Sterling, for domestic transactions within the country. 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 Other Related Matters,” was introduced by Senator Ned Nwoko, the Chairman of the Senate Committee on Reparations and Repatriation.
Senator Nwoko presented the bill, emphasizing the need to make the Naira the sole legal tender for all payments, salaries, and financial transactions conducted within Nigeria. He described the widespread use of foreign currencies as a “colonial relic” that continues to undermine the Naira’s value and economic independence. According to Nwoko, the practice contributes to economic instability by fostering a dependency on foreign currencies, which weakens Nigeria’s monetary sovereignty.
“The extensive use of foreign currencies in our financial transactions continues to erode the value of the Naira and fosters a dependency that hinders Nigeria’s economic sovereignty. This legislation is a step toward restoring confidence in our local currency and reducing unnecessary pressures on our economy,” Nwoko stated.
If enacted, the bill would prohibit the use of foreign currencies for various domestic transactions, including salaries, bonuses, and other forms of remuneration. It would also apply to local purchases and financial dealings, encouraging the adoption of the Naira in all sectors of the economy. The bill aims to strengthen Nigeria’s economy, promote economic stability, and encourage the use of local resources.
While the bill has received support from those who believe it will enhance the value of the Naira and boost Nigeria’s economic stability, it is expected to face significant scrutiny. Critics may raise concerns regarding the feasibility of enforcing such a law, particularly given the country’s reliance on foreign currencies for international trade, remittances, and private sector operations.
The bill’s passage marks a critical step toward addressing the ongoing challenges faced by Nigeria’s financial system and its reliance on foreign currencies. If passed into law, it could reshape the financial landscape of the country, placing greater emphasis on the use of the Naira and advancing the push for economic sovereignty.
