Measures to restore Nigeria’s monetary sovereignty by prohibiting the use of foreign currencies for payments and transactions within the country have been initiated by the Senate.
Meant to ensure that all payments (salaries and transactions included) are conducted in Naira, the bill seeks to eliminate discriminatory practices and strengthen confidence in the local currency.
The above means that if passed into law, the legislation would ensure the mandatory payment for exports in Naira.
Sponsored by Senator Ned Nwoko, the bill is 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’.
Nwoko stated that the widespread use of foreign currencies in Nigeria’s financial system undermines the value of the Naira, resulting in economic challenges.
According to the senator, the use of the Dollar, Pound Sterling, and other currencies for domestic transactions is a colonial relic that hinders Nigeria’s economic independence.
The bill:
“Prohibits salaries, transactions, and payments in foreign currencies, ensuring all workers, including expatriates, are paid in Naira.
“Requires crude oil and other exports to be sold exclusively in Naira, compelling international buyers to purchase the currency and driving its demand and value.
“Positions the Naira as the central currency for all financial operations, reinforcing its dominance in the economy.
“Seeks to abolish informal currency markets that undermine the formal economy and encourage unethical practices such as round-tripping by banks.
“Directs banks to provide loans at affordable interest rates to stimulate industrialization and economic growth
Advocates for storing Nigeria’s foreign reserves domestically to safeguard the country’s economic sovereignty and reduce exposure to external vulnerabilities.
“Reclaims monetary independence by prioritizing the Naira for both domestic and international transactions.
“Increases the currency’s value through higher demand driven by its exclusive use for exports.
“Fosters fairness in salary payments by standardizing remuneration in Naira for both local and expatriate workers.
“Supports the manufacturing sector with accessible credit facilities to encourage local production and reduce dependency on imports.
“Fosters national pride and economic self-reliance by reducing reliance on foreign currencies.
“Builds a diversified and resilient economy through coordinated monetary and fiscal policies.”
Senator Nwoko further disclosed that transitioning domiciliary account balances to Naira would be a voluntary process for account holders. This way, as the Naira is strengthened, the need to hold foreign currencies would diminish, making the transition seamless.
Nigerians were also assured that access to foreign exchange for travel and other legitimate purposes would be streamlined through banking reforms, alleviating concerns about access to Basic Travel Allowance (BTA) and other forex needs.
Source: Daily Sun
