The Senate has proposed a bill to ban use of foreign currencies for payments and other transactions in Nigeria.
It is 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.”
It is sponsored by the Chairman Senate Committee on Reparations and Repatriation, Senator Ned Munir Nwoko.
The proposed legislation aimed at ensuring that all payments, including salaries, are conducted in Naira within the country.
The bill also seeks to strengthen confidence in the local currency (Naira) as part of efforts to end discriminatory practices against it.
Senator Nwoko explained that the Naira has been undermined due to widespread use of foreign currencies in the country’s financial system, and described the use of the Dollar, Pound, Euro and other foreign currencies for domestic transactions as a “colonial relic” that continues to hinder Nigeria’s economic independence.
Daily Trust reports that the bill also requires crude oil and other exports to be sold exclusively in Naira, compelling international buyers to purchase the currency and driving its demand and value.
It also seeks to abolish informal currency markets that undermine the formal economy and encourage unethical practices such as round-tripping by banks.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
