A bill aimed at prohibiting the use of foreign currencies 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,” seeks to enforce the exclusive use of the naira in financial transactions across the country.

The bill, sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation, intends to ensure that all payments, including salaries and other financial dealings, are made solely in Nigeria’s local currency, the naira.

Senator Nwoko criticized the widespread use of foreign currencies, such as the US dollar and British pound, in Nigeria’s financial system. He described this practice as a “colonial relic” that undermines the value of the naira and hinders Nigeria’s economic independence.

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

The bill’s passage through the first reading marks a significant step in addressing Nigeria’s ongoing currency depreciation and dependence on foreign exchange. If passed into law, the ban would have wide-ranging effects on transactions across various sectors, driving a shift to the naira for all forms of remuneration and payments.

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

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