Bill To Ban Local Use Of Dollar In Senate

The Nigerian Senate is considering a new law to stop the use of foreign currencies for payments within the country. The bill aims to ensure that all payments, including salaries and export earnings, are made in Naira.

This move is designed to reduce reliance on foreign currencies, strengthen the Naira, and promote economic stability.

The legislation, titled “A Bill for an Act to Alter the Central Bank of Nigeria Act, 2007,” is sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation. He criticized the use of foreign currencies like the Dollar and Pound in domestic transactions, calling it a “colonial hangover” that undermines Nigeria’s financial independence.

Key Proposals in the Bill
The bill contains several measures to enhance the Naira’s strength and reduce Nigeria’s dependence on foreign currencies:

1.Salaries in Naira: All employees, including expatriates, must be paid only in Naira.

2. Export Payments: Payments for exports like crude oil must be made in Naira, encouraging foreign buyers to purchase the currency for trade.

3. Elimination of Informal Currency Market: The bill targets illegal currency trading practices to stabilize the financial system.

4. Affordable Loans: Banks will be required to offer loans at low-interest rates to support local businesses and industrial growth.

5. Domestic Reserves: Nigeria’s foreign reserves will be held within the country to reduce economic risks and strengthen self-reliance.

6. Exclusive Use of Naira: The Naira will ⁰become the only currency for all domestic transactions.

7. Voluntary Account Conversion: People with domiciliary accounts can choose to convert their funds into Naira. Senator Nwoko believes this will naturally increase as the Naira strengthens.

8. Improved Access to Forex: Travelers and students will have easier access to foreign exchange through regulated banking systems.

Inspiration from Morocco
Senator Nwoko highlighted Morocco’s success in stabilizing its currency, the Dirham, by strictly using it for domestic transactions. He argued that with Nigeria’s resources and population, similar stability is achievable.

Future Benefits
If implemented, the bill could help Nigerian banks grow internationally and introduce services like global cashless wallets. Senator Nwoko believes the proposed changes will not only stabilize the economy but also increase confidence in the Naira and boost national pride..

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