A new bill aiming to ban the use of foreign currencies, including the US Dollar and British Pound Sterling, for domestic transactions in Nigeria has passed its first reading in the Senate.
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, Chairman of the Senate Committee on Reparations and Repatriation.
The proposed law seeks to make the Naira the only legal tender for all transactions, salaries, and payments within Nigeria.
In presenting the bill, Senator Nwoko expressed concerns over the widespread use of foreign currencies, describing it as a “colonial relic.” He emphasized that such practices diminish the value of the Naira and hinder the country’s economic independence.
“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,” Nwoko stated. “This legislation is a step toward restoring confidence in our local currency and reducing unnecessary pressures on our economy.”
If passed, the bill would prohibit the use of foreign currencies for salaries, bonuses, and other forms of remuneration, as well as local transactions. The aim is to boost the adoption of the Naira, strengthen the economy, and encourage reliance on the country’s own resources.
While the bill has garnered support for its potential to strengthen the Naira and promote economic stability, it is expected to face challenges. Critics may raise concerns about its feasibility, particularly due to Nigeria’s reliance on foreign currencies in international trade, remittances, and private sector operations.
