Bill to ban use of dollars, foreign currencies in Nigeria passes first reading

A bill seeking to prohibit the use of foreign currencies in Nigeria has passed its first reading at 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," aims to prioritise the use of Nigeria’s local currency, the naira.

The bill, sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation, is designed to ensure that all payments, including salaries and financial transactions, are conducted exclusively in naira.

Speaking on the bill, Senator Nwoko criticised the widespread use of foreign currencies like the US dollar and British pound sterling for transactions in Nigeria.

He described the practice as a “colonial relic” that undermines the value of the naira and continues to impede Nigeria’s economic independence.

“The use of foreign currencies in our financial system perpetuates economic instability and weakens the naira. It is time we prioritise our own currency to achieve true economic sovereignty,” Nwoko stated.

The bill’s passage through its first reading signals growing legislative efforts to address Nigeria’s currency depreciation and reliance on foreign exchange. If passed into law, the proposed ban would significantly impact transactions across various sectors, ensuring a shift to the naira for all forms of remuneration and payments.

The Senate will deliberate further on the bill as it progresses through subsequent readings and committee reviews.