By: Bayero Ade
The Nigerian Senate has introduced a bill seeking to ban the use of foreign currencies, such as 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,” passed its first reading on the Senate floor. It was sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
Senator Nwoko highlighted concerns over the extensive use of foreign currencies in Nigeria’s financial system, describing it as a remnant of colonial practices that continues to erode the value of the Naira and undermine the country’s economic independence.
“The widespread use of foreign currencies for transactions has weakened the Naira and created a dependency that stifles our economic sovereignty,” Nwoko said. “This bill is a crucial step toward strengthening our local currency, restoring confidence in its use, and easing the economic burden.”
The proposed legislation aims to make the Naira the sole legal tender for all domestic payments, including salaries, bonuses, and other forms of financial transactions. Its objectives include promoting the adoption of the Naira, reducing reliance on foreign currencies, and encouraging a stronger, more resilient economy.
While the bill has been praised for its potential to stabilize the Naira and bolster economic confidence, it is expected to face opposition. Critics are likely to raise concerns about its feasibility, considering Nigeria’s dependence on foreign currencies for international trade, remittances, and private sector activities.
Further deliberations on the bill will continue as the Senate prepares for subsequent readings and debates.pares for subsequent readings and debates.
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