Bill to Ban Use of Foreign Currencies in Nigeria Passes First Reading in Senate

A bill seeking to ban the use of foreign currencies for transactions and remuneration 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.

The bill aims to ensure that all payments, including salaries and other financial transactions within the country, are conducted exclusively in Nigeria’s local currency, the naira.

Speaking on the rationale behind the bill, Senator Nwoko emphasized that the widespread use of foreign currencies—particularly the Dollar and Pound Sterling—undermines the value of the naira and exacerbates Nigeria’s economic challenges.

“The use of foreign currencies for local transactions is a colonial relic that continues to hinder Nigeria’s economic independence. We must safeguard the naira and prioritize its use to strengthen our financial system,” he said.

Nwoko further stressed that allowing foreign currencies to dominate Nigeria’s economy weakens national sovereignty and perpetuates inflationary pressures, exchange rate volatility, and economic instability.

The proposed legislation comes amid ongoing concerns about the declining value of the naira and the heavy reliance on the dollar for business, contracts, and salary payments, particularly in private sectors and high-profile organizations.

The bill will proceed to subsequent readings and scrutiny in the Senate before being considered for passage into law. If enacted, it is expected to reshape Nigeria’s monetary practices and reinforce the naira’s role in the country’s economy.