Senate Moves To Ban Use Of Foreign Currencies In Business Transactions In Nigeria

The Senate is intensifying efforts to ban the dollarization of the Nigerian economy as a bill seeking to ban the use of foreign currency in transacting businesses in Nigeria has scaled the first reading on the floor of the Nigerian Senate.

The 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,” was sponsored by the Chairman of the Senate Committee on Reparations and Repatriation, Senator Ned Nwoko from Delta State.

The proposed legislation is aimed at ensuring all payments including salaries and other transactions are done using the local currency, naira.

According to Senator Nwoko, the widespread use of foreign currencies in the country’s financial system undermines the value of the Naira, which he said, perpetuates economic challenges.

The lawmaker described the use of the Dollar, Pound Sterling, and other foreign currencies for transactions in Nigeria as a colonial relic that continues to hinder Nigeria’s economic independence.