Senate Proposes Ban on Dollar Salaries and Foreign Currency Transactions

The Nigerian Senate has introduced a bill to amend the Central Bank of Nigeria Act, 2007, prohibiting the use of foreign currencies for payments and transactions within the country. 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 passed its first reading and was sponsored by Senator Ned Munir Nwoko. The legislation seeks to establish the Naira as the sole currency for all financial operations, including salaries, transactions, and exports.

Senator Nwoko argued that the dominance of foreign currencies in Nigeria undermines the Naira’s value and perpetuates economic challenges. He described the practice as a “colonial relic” impeding Nigeria’s economic independence. The bill proposes mandatory use of the Naira for export payments, including crude oil sales, which would compel international buyers to purchase Naira, thereby boosting its demand and value. It also seeks to prohibit informal currency markets and unethical banking practices while advocating for domestic storage of foreign reserves to safeguard Nigeria’s economic sovereignty.

If enacted, the legislation aims to bolster confidence in the Naira, eliminate discriminatory practices, and ensure all workers, including expatriates, are paid in local currency. The broader goal is to reinforce the Naira’s dominance, stabilize the economy, and reduce dependence on foreign currencies in domestic and international financial transactions.