The Senate is taking steps to restore Nigeria’s monetary sovereignty by banning the use of foreign currencies for payments and transactions within the country.
This initiative will require that all salaries, transactions, and payments be made in naira, eliminating discriminatory practices and strengthening confidence in the local currency, especially for exports.
To implement this, the Senate is drafting a bill to amend the Central Bank of Nigeria (CBN) Act of 2007. Sponsored by Senator Ned Nwoko (PDP, Delta North), 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,” aims to ban the use of the US dollar and other foreign currencies in Nigeria’s economy.
Senator Nwoko argues that foreign currencies have diminished the naira’s value, and he believes this ban is crucial for Nigeria’s economic freedom.
He described the reliance on foreign currencies as a remnant of colonialism, asserting that true economic independence has not yet been achieved.
Key policies in the bill include: – Ban on Foreign Currency Payments: All remuneration, including for expatriates, will be in naira.
Mandatory Naira Payments for Exports: Crude oil and other exports must be sold in naira.
Financial System Transition to Naira: Reinforces naira as the primary currency for financial operations.
Elimination of the Parallel Market: Aims to abolish informal currency practices. –
Support for Local Manufacturers: Directs banks to offer affordable loans to stimulate growth. –
Reform of Foreign Reserve Practices: Advocates for holding reserves domestically.
Adoption of Comprehensive Policies: Focuses on production, financing, and local innovation to strengthen the economy.
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