Shocking as Senate Moves to Ban Foreign Currencies in Nigeria, Insist on Only Naira Transactions

Israel Adeleke

OPEN TELEVISION NAIJA (OTN) News reports that the Senate has passed a bill to ban the use of foreign currencies including the US Dollar and British Pound Sterling, for domestic transactions in Nigeria.

OTN News further reports that the new 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,” has passed its first reading in the Senate.

Furthermore, OTN News gathered that the bill was introduced by the Chairman of the Senate Committee on Reparations and Repatriation, Senator Ned Nwoko.

The proposed legislation seeks to make the Naira the sole legal tender for all payments, salaries, and financial transactions conducted within Nigeria.

In presenting the bill, Senator Nwoko expressed concern over the widespread use of foreign currencies in the country’s financial system, which he described as a “colonial relic.”

He argued that such practices undermine the value of the Naira, perpetuating economic challenges and weakening Nigeria’s monetary independence.

He said, “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.

“This legislation is a step toward restoring confidence in our local currency and reducing unnecessary pressures on our economy,” Nwoko stated.

OTN News observed that if enacted, the bill will prohibit the use of foreign currencies for salaries, bonuses, and other forms of remuneration, as well as for local transactions. 

Also, It aims to promote the adoption of the Naira, strengthen the economy, and encourage the use of the country’s own resources, the senate explained.

However, while the proposed law has garnered support for its potential to boost the Naira’s value and promote economic stability, it is also expected to face scrutiny.