The Senate, on Tuesday, passed for first reading a bill to ban the use of foreign currencies for payments and transactions within Nigeria.
The proposed legislation, aimed at ensuring all payments, including salaries and transactions, are conducted in naira, seeks to eliminate discriminatory practices and strengthen confidence in the local currency.
This includes making it mandatory for exports to be paid for in naira. The bill was 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 was sponsored by Ned Nwoko, who is the Chairman of the Senate Committee on Reparations and Repatriation.
According to Nwoko, the widespread use of foreign currencies in Nigeria’s financial system undermines the value of the naira, perpetuating economic challenges.
He described the use of the dollar, Pound Sterling, and other foreign currencies for domestic transactions as a colonial relic that continues to hinder Nigeria’s economic independence.
