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'Seun Ibukun-Oni, Abuja
DAILY COURIER – The Nigerian Senate on Tuesday introduced a new bill in a bold move to outlaw the use of the dollar and other foreign currencies for local transactions in the country.
The proposed legislation is aimed at ensuring all payments including salaries and transactions are conducted in Naira.
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 sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation, was passed for second reading at plenary on Tuesday.
In his defence, Nwoko argued that the widespread use of foreign currencies in Nigeria’s financial system undermines the value of the Naira, perpetuating economic challenges.
He described the use of the Dollar, Pound Sterling, and other foreign currencies for domestic transactions as a colonial relic that continues to hinder Nigeria’s economic independence.
He noted the stability of the Moroccan Dirham, which has maintained consistent value against major currencies for over 35 years. Nwoko attributed this to Morocco’s policy of exclusively using its local currency for domestic transactions.
“The extensive use of foreign currencies in our financial transactions continues to erode the value of the Naira and fosters a dependency that hinders Nigeria’s economic sovereignty.
“This legislation is a step toward restoring confidence in our local currency and reducing unnecessary pressures on our economy”, he said.
If passed into law, the bill will prohibit the use of foreign currencies for local transactions, including salaries, bonuses, and other forms of remuneration.
