The Senate has taken steps to strengthen Nigeria’s monetary sovereignty by introducing a bill to outlaw the use of foreign currencies for payments and transactions within 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 for Other Related Matters,” is sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
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Senator Nwoko explained that the bill aims to ensure all payments, including salaries and other transactions, are conducted in Naira. He emphasized that the reliance on foreign currencies such as the Dollar and Pound Sterling for domestic transactions undermines the Naira, describing it as a colonial relic that stifles Nigeria’s economic independence.
He said, “The widespread use of foreign currencies in our financial system perpetuates economic challenges and erodes confidence in the Naira.”
The bill includes a range of measures aimed at bolstering the Naira and reshaping Nigeria’s economic framework. These include mandating that all workers, including expatriates, be paid in Naira and requiring crude oil and other exports to be sold exclusively in the local currency. By doing so, international buyers would be compelled to purchase the Naira, driving up its demand and value.
Senator Nwoko highlighted additional objectives of the bill, such as abolishing informal currency markets that facilitate unethical practices like round-tripping, encouraging banks to provide affordable loans for industrial growth, and ensuring Nigeria’s foreign reserves are stored domestically.
“Reclaiming monetary independence is key to fostering fairness in salary payments, boosting local production, and reducing our reliance on imports,” Nwoko added.
He further clarified that transitioning balances in domiciliary accounts to Naira would be a voluntary process for account holders. He assured Nigerians that access to foreign exchange for legitimate purposes, such as travel and business, would remain available, with reforms ensuring easier access to Basic Travel Allowance (BTA) and other forex needs.
Drawing a comparison with Morocco, Senator Nwoko praised the stability of the Moroccan Dirham, which has maintained consistent value against major currencies for over 35 years. He attributed this to Morocco’s policy of exclusively using its local currency for domestic transactions.
According to Nwoko, Nigeria has the potential to achieve even greater economic success with its vast natural resources and dynamic population. He urged a shift in how Nigerians perceive and use the Naira, envisioning a future where Nigerian banks expand internationally and offer innovative tools for global financial transactions.
