The Nigerian Senate has proposed a bill to ban the use of foreign currencies for payments and other transactions within the country.
The proposed legislation, titled “A Bill for an Act to Alter the Central Bank of Nigeria Act, 2007,” is sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation. It aims to ensure that all transactions, including salaries and payments, are conducted exclusively in Naira.
Senator Nwoko described the widespread use of foreign currencies, such as the US Dollar, British Pound, and Euro, as a “colonial relic” that continues to undermine Nigeria’s economic independence. He emphasized that the bill seeks to strengthen confidence in the Naira and eliminate practices that discriminate against the local currency.
The bill also proposes that Nigeria’s crude oil and other exports be sold exclusively in Naira. This would require international buyers to purchase the local currency, increasing its demand and value.
Additionally, the legislation seeks to address informal currency markets, which are often blamed for undermining the formal economy. By tackling unethical practices such as round-tripping by banks, the bill aims to stabilize Nigeria’s financial system.
The proposal comes amid ongoing economic challenges, including currency depreciation and inflation. Supporters believe the measure could boost the Naira’s value, while critics caution it may face implementation hurdles.
The Senate is expected to debate the bill further in the coming weeks.