Yemi Olakitan
In a bid to restore Nigeria’s monetary sovereignty, the Senate has initiated a bill to prohibit the use of foreign currencies in domestic transactions. The proposed legislation, sponsored by Senator Ned Munir Nwoko, aims to strengthen the Naira by making it the exclusive currency for all payments, including salaries and exports.
The bill seeks to eliminate discriminatory practices and boost confidence in the local currency. It also proposes making it mandatory for exports to be paid for in Naira, which would compel international buyers to purchase the currency, driving up its demand and value.
The proposed legislation, aimed at ensuring all payments—including salaries and transactions—are conducted in Naira, seeks to eliminate discriminatory practices and strengthen confidence in the local currency. This includes making it mandatory for exports to be paid for in Naira.
The bill, 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,” is sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation
Senator Nwoko emphasized 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 foreign currencies for domestic transactions as a colonial relic that hinders Nigeria’s economic independence.
The bill has sparked mixed reactions, with some experts questioning its practicability, given Nigeria’s reliance on imports and the need for foreign exchange. However, Senator Nwoko remains optimistic, citing Morocco’s success in maintaining a stable currency by exclusively using its local currency for domestic transactions.
If passed, this legislation could mark the beginning of a transformative era for Nigeria’s economy, driving growth, cultural pride, and sustainable development anchored in the strength of the Naira.
