The Nigerian Senate has introduced a bill seeking to prohibit the use of foreign currencies, such as the US Dollar and British Pound Sterling, for domestic transactions in the country.
The proposed legislation, 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,” passed its first reading in the Senate.
The bill was sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
Senator Nwoko, while presenting the bill, described the widespread use of foreign currencies within Nigeria’s financial system as a “colonial relic” that undermines the Naira’s value and Nigeria’s economic independence.
“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,” Nwoko said. “This legislation is a step toward restoring confidence in our local currency and reducing unnecessary pressures on our economy.”
If passed into law, the bill would make the Naira the sole legal tender for all domestic payments, salaries, bonuses, and financial transactions within Nigeria. The move is aimed at strengthening the Naira, boosting economic stability, and promoting Nigeria’s financial autonomy.
While the bill has received support for its potential to stabilize the economy and bolster the Naira’s value, it is expected to face significant scrutiny. Critics may question its practicality, given Nigeria’s reliance on foreign currencies for international trade, remittances, and private sector operations.