The Nigerian Senate has introduced a bill seeking to prohibit the use of foreign currencies for payments and transactions within the country, aiming to bolster confidence in the local currency—the Naira.
The bill, titled “A Bill for an Act to Alter the Central Bank of Nigeria Act, 2007, No. 7,” is sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation. It mandates that all domestic transactions, including salaries, must be conducted exclusively in Naira to eliminate practices that undermine its value.
Senator Nwoko criticized the widespread use of foreign currencies like the Dollar, Pound, and Euro for local transactions, describing it as a “colonial relic” that continues to hinder Nigeria’s economic independence.
In a significant shift, the bill proposes that crude oil and other exports be sold exclusively in Naira, requiring international buyers to purchase the currency. This move is designed to drive demand for the Naira and enhance its value in global markets.
The legislation also targets informal currency markets, which it blames for unethical practices such as round-tripping by banks. By curbing these markets, the Senate aims to stabilize the economy and promote transparency within the financial system.
The proposed bill is expected to spark national debate as Nigeria grapples with economic challenges and the need to safeguard its monetary sovereignty.
