A bill seeking to ban the use of foreign currencies, including the dollar and pound sterling, for transactions in Nigeria has passed its first reading in the Senate.
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 Other Related Matters,” is sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
Senator Nwoko emphasized that the unrestricted use of foreign currencies in Nigeria undermines the naira’s value and contributes to the nation’s economic challenges. Describing it as a “colonial relic,” the lawmaker argued that over-reliance on foreign currencies hinders Nigeria’s path to economic independence and stability.
The bill aims to ensure all payments, including salaries and other financial transactions, are conducted strictly in the local currency, the naira.
As economic experts weigh in on the potential implications, the bill has sparked mixed reactions among stakeholders who are monitoring its progress through subsequent readings.
