A bill aimed at outlawing the use of foreign currencies for payments and transactions in Nigeria has passed its first reading in the Senate.
The legislation seeks to boost the Naira’s value, eliminate discriminatory practices in payments, and restore the country’s monetary sovereignty.
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,” the bill is sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
Senator Nwoko criticized the widespread use of foreign currencies, describing it as a colonial relic that undermines the Naira and perpetuates economic instability. He argued that mandating the exclusive use of Naira for salaries, payments, and exports would restore confidence in the local currency and drive economic independence.
The proposed law, which would make the Naira the sole legal tender for all transactions, seeks to compel international buyers to purchase Naira for exports such as crude oil, thereby increasing demand and bolstering its value. The bill also aims to address unethical practices in the informal currency market, strengthen industrial growth through affordable loans, and ensure that Nigeria’s foreign reserves are stored domestically to reduce economic vulnerabilities.
Senator Nwoko assured Nigerians that transitioning domiciliary accounts to Naira would remain voluntary and emphasized that access to foreign exchange for travel and other legitimate purposes would be streamlined through banking reforms. He noted that the gradual strengthening of the Naira would diminish the need for foreign currency holdings over time.
Drawing comparisons with Morocco, where the Dirham has maintained stability for decades due to strict currency policies, Nwoko expressed optimism that Nigeria’s vast resources and population could surpass Morocco’s achievements if the Naira is prioritized for domestic and international transactions.
The bill envisions a future where Nigerian banks operate internationally, offering innovative financial tools to simplify global transactions. According to Nwoko, this legislation would tackle challenges like the inability of Nigerian debit cards to facilitate international payments and reduce reliance on domiciliary accounts.
If passed, the bill could mark a transformative step toward economic growth, cultural pride, and sustainable development anchored in the strength of the Naira.
