Nigeria’s Senate Advances Legislation to Prohibit Dollar and Foreign Currency Transactions

Proposed Ban on Foreign Currency Usage in Nigeria

A new legislative proposal to ban foreign currency usage within Nigeria has successfully passed its initial reading in the Senate.

This initiative is led by Senator Ned Nwoko, the Chairman of the Senate Committee on Reparations and Repatriation.

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,” the bill was introduced on a Monday.

The legislation focuses on mandating that all payments, including salaries and other financial transactions, be conducted exclusively in the Naira, Nigeria’s local currency.

Senator Nwoko emphasized that the prevalent use of foreign currencies disrupts the value of the Naira and exacerbates the country’s economic challenges.

He characterized the reliance on currencies such as the Dollar and Pound Sterling as remnants of colonial times, which impede Nigeria’s economic self-sufficiency.