The Senate has passed for first reading a bill to ban the use of foreign currencies for payments and transactions within Nigeria.
The bill was 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 for Other Related Matters.”
Sponsored by the Chairman of the Senate Committee on Reparations and Repatriation, Ned Nwoko, the legislation aims to eliminate discriminatory practices and strengthen confidence in the local currency.
Speaking on the bill, Senator Nwoko said the widespread use of foreign currencies in Nigeria’s financial system undermines the value of the naira, perpetuating economic challenges.
He described the use of the dollar, Pound Sterling, and other foreign currencies for domestic transactions as a colonial relic that continues to hinder Nigeria’s economic independence.
The lawmaker also proposed that crude oil and other exports should be sold exclusively in naira, compelling international buyers to purchase the currency and driving its demand and value.
Senator Nwoko argued that the law will position the Naira as the central currency for all financial operations, reinforcing its dominance in the economy and abolish informal currency markets.