Senate Proposes Ban on Foreign Currencies in Domestic Transactions

In a bid to boost confidence in the Naira and reinforce its dominance, the Senate has introduced a bill to prohibit the use of foreign currencies for payments and transactions within Nigeria.

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,” passed its first reading on Tuesday.

Sponsored by Senator Ned Munir Nwoko, chairman of the Senate Committee on Reparations and Repatriation, the legislation seeks to curb the reliance on foreign currencies such as the US Dollar and British Pound Sterling for local transactions.

Senator Nwoko criticized the trend as a “colonial relic” that undermines the value of the Naira and impedes Nigeria’s economic independence. “The use of the Dollar, Pound Sterling, and other foreign currencies for domestic transactions continues to hinder Nigeria’s economic independence,” he stated.

If passed into law, the bill will mandate that salaries, payments, and all domestic financial operations—including those involving expatriates—be conducted exclusively in Naira.

Additionally, crude oil sales and other exports would be transacted in Naira, compelling international buyers to purchase the currency, thereby driving its demand and strengthening its value.

The proposed legislation also aims to abolish the parallel foreign exchange market, which Senator Nwoko argued undermines the formal economy.

He emphasized that the bill would foster economic independence and promote the Naira as the sole legal tender for domestic and export-related transactions.