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Bill to ban foreign currency for transactions scales first reading

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A bill seeking to ban the use of foreign currencies for payments and transactions in Nigeria has passed its first reading in the Senate.

The proposed legislation aims to restore confidence in the Naira, eliminate discriminatory payment practices, and bolster the country’s monetary sovereignty.

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,” is sponsored by Senator Ned Munir Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.

Senator Nwoko criticized the widespread use of foreign currencies in Nigeria, describing it as a colonial relic that undermines the value of the Naira and perpetuates economic challenges.

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“The use of the Dollar, Pound Sterling, and other foreign currencies for domestic transactions is a colonial relic that continues to hinder Nigeria’s economic independence,” he said.

The bill proposes that all salaries, including those of expatriates, be paid in Naira. It also seeks to make the Naira mandatory for export transactions, requiring international buyers to purchase the currency, which would drive up its demand and value.

Additionally, the legislation aims to address unethical practices in the informal currency market, strengthen industrial growth through affordable loans, and safeguard Nigeria’s economic sovereignty by storing foreign reserves domestically.

Clarifying concerns over domiciliary accounts, Senator Nwoko explained that transitioning their balances to Naira would be voluntary. “As the Naira strengthens, the need to hold foreign currencies would diminish, making the transition seamless,” he said.

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He also assured Nigerians that access to foreign exchange for legitimate purposes, such as travel and medical needs, would be streamlined through banking reforms, alleviating concerns over access to Basic Travel Allowance (BTA) and other forex requirements.

Citing Morocco as an example, Nwoko noted the stability of the Moroccan Dirham, which has maintained consistent value against major currencies for over 35 years.

“With Nigeria’s vast resources and vibrant population, we have the potential to surpass Morocco’s achievements, but only if we embrace a paradigm shift in how we use and perceive the Naira,” he added.

The bill also envisions a future where Nigerian banks expand globally, offering innovative financial tools to simplify international transactions.

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It seeks to address existing challenges, such as the inability of Nigerian debit cards to facilitate online payments, while reducing reliance on domiciliary accounts.

If enacted, the bill could mark the beginning of a transformative era for Nigeria, fostering economic growth, cultural pride, and sustainable development anchored in the strength of the Naira.

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Nigerian Online Population Shows Strong Enthusiasm for AI – Report

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A new global survey report from Ipsos and Google has shown widespread use of Artificial Intelligence (AI) tools among Nigerian online population.

The study, tagged: “Our Life with AI: From Innovation to Application,” surveyed 21,000 people across 21 countries, and observed that global AI usage has jumped to 48 per cent and excitement about its potential now exceeds concerns (57 per cent vs. 43 per cent, up from 50 per cent / 50 per cent last year).

According to the report, in Nigeria, AI adoption and enthusiasm are even higher, as 70 per cent of the Nigerian online population used generative AI, surpassing the 48 per cent global average. Moreover, 87 per cent are excited about AI’s potential and see its benefits outweighing the risks.

Analysing the report, President of Global Affairs, Google & Alphabet, Kent Walker, said: “AI is starting to deliver magic at scale, making people’s lives easier and better. The survey results show the more people use these tools, the more excited they get about the possibilities and about the personal, professional, and scientific breakthroughs on the way.”

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The survey results indicate that optimism about AI is growing within the surveyed online community in Nigeria. Key findings from the survey, show that among survey participants in Nigeria, 70 per cent reported using generative AI in the past year, which is significantly higher than the global average of 48 per cent. A substantial 87 per cent of Nigerian respondents feel that AI’s potential benefits outweigh the associated risks, suggesting a strong belief in the positive impact of AI. A significant 81 per cent of surveyed Nigerian adults believe AI will positively change the economy.

Furthermore, 90 per cent of the survey respondents in Nigeria anticipate AI having a positive impact on science and medicine, demonstrating the widespread belief in the potential of AI to drive progress in these sectors.

According to the report, Nigeria’s online population demonstrates a higher level of excitement and adoption of AI when compared to other regions. The survey indicates: Nigeria is among the top countries in terms of AI usage and excitement about its potential.

This contrasts with more cautious sentiment in some European and North American countries.

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The report also said the Nigerian online community saw immense potential for AI in science and medical advancements:

“A significant 90 per cent of survey respondents expect AI to have a positive impact on science and medicine. This is one of the highest rates globally, highlighting the strong anticipation of breakthroughs in these fields through AI,” the report said, and onlinerd that the population in Nigeria recognised AI’s potential to enhance personal and professional development:

“Many believe AI can make people’s lives better by boosting productivity and providing access to resources. Within the Nigerian online population surveyed, there is a prevailing sentiment that supports the fostering of AI advancement rather than restrictive regulations. This suggests that those surveyed are keen to embrace innovation,” the report further said.

The survey results highlight the strong enthusiasm and optimism of the surveyed online population in Nigeria about the role of AI in various aspects of life, particularly in the economy, healthcare, and scientific advancement. The findings suggest that Nigeria’s online community is among the most enthusiastic globally about the transformative potential of AI.

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Google has been pursuing AI boldly and responsibly for years. In 2018, Google was one of the first companies to establish AI Principles grounded in beneficial use and avoidance of harm. Two years ago, it unveiled its opportunity agenda, which shard concrete recommendations for governments to ensure AI benefits the broadest range of people possible.

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President Tinubu Reportedly Backs Creation of New Southwest State

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President Bola Ahmed Tinubu is reportedly backing the creation of a new Ijebu State in Nigeria’s Southwest region.

The proposed state would be carved out of Ogun State, following a long-standing demand by the Ijebu people for recognition as an independent entity, a fresh report has revealed.

Sources revealed that President Tinubu gave his assurances during a meeting with the Awujale of Ijebuland, Oba Sikiru Adetona, at his Bourdillon residence on January 5.

During the meeting, Oba Adetona said that Ijebu is the only former colonial province in Nigeria that has not been granted statehood, unlike other provinces such as Oyo and Sokoto, which have been divided into multiple states. The monarch argued that the Ijebu people have waited long enough for their own state.

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“The president did not hesitate to express his support,” People’s Gazette quoted a source familiar with the meeting as saying.

Oba Adetona had reportedly highlighted the region’s resources and infrastructure, including industrial estates, an international airport under construction, and plans for a deep-sea port, while making case for the state creation.

In December 2024, Oba Adetona, alongside other traditional rulers and leaders from the Ijebu province, held a meeting to discuss logistics for the proposed state. These discussions focused on issues such as the location of the state capital, the creation of local government areas, and the allocation of federal resources.

The monarch expressed confidence in the region’s ability to thrive as an independent state, stating that it is well-positioned for growth and development. “Ijebu province is economically viable and already has all the infrastructural facilities needed to sustain a state,” he had said.

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Before that, in November 2024, Senator Gbenga Daniel, representing Ogun East, introduced a bill titled the “Constitution of the Federal Republic of Nigeria (Sixth Alteration) Bill, 2024 (Creation of Ijebu State) to the National Assembly. The bill seeks to amend the 1999 Constitution to allow for the creation of the new state.

With bills for the creation of other states in other regions of the country, it passed various legislature stages.

Critics argue that the move for the creation of Ijebu State is ill-timed, given the country’s pressing economic issues, including poverty, inflation, and insecurity.

Some political analysts have speculated that President Tinubu’s alleged support for state creation could be politically motivated, as new states might be more inclined to back him for a second term.

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Meanwhile, the presidency has reportedly avoided issuing an official statement on the matter, possibly to prevent sparking controversy among supporters of other state creation initiatives across the country.

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FAAC: FG, States, LGs share N1.424 trillion December 2024 Revenue

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The federation account allocation committee (FAAC) says it shared N1.42 trillion among the three tiers of government in December 2024, noting that Nigeria’s gross statutory revenue declined by 32 percent.

The allocation, which was from a gross total of N2.310 trillion, represents an increase of N300 billion compared to the N1.72 trillion distributed in November.

In a statement on Friday, the ministry of finance said the FAAC announced the disbursements at its December meeting in Abuja, chaired by Wale Edun, minister of finance.

The committee said from distributable amount inclusive of gross statutory revenue, value added tax (VAT), electronic money transfer levy (EMTL), and exchange difference (ED), the federal government received N451 billion, the states received N498 billion, local governments got N361 billion, while the oil producing states received N113.477 billion as derivation, (13 percent of mineral revenue).

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FAAC added that the sum of N84.7 billion was given for the cost of collection, while N801 billion was allocated for transfers, intervention and refunds.

The communique also said the gross revenue available from the VAT for the month of December 2024, was N649.5 billion as against N628.9 billion distributed in the preceding month, resulting in an increase of N20.5 billion.

“From that amount, the sum of N25.982 billion was allocated for the cost of collection and the sum of N18.707 billion given for Transfers, Intervention and Refunds,” FAAC said.

“The remaining sum of N649.561 billion was distributed to the three tiers of government, of which the Federal Government got N90.731 billion, the States received N302.436 billion and Local Government Councils got N211.705 billion.”

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The committee said gross statutory revenue of N1.22 billion received in December was lower than the N1.82 billion received in the previous month by N6.98 million or 32.9 percent.

“From the stated amount, the sum of N57.498 billion was allocated for the cost of collection and a total sum of N782.468 for Transfers, Intervention and Refunds,” the committee added.

“The remaining balance of N386.124 billion was distributed as follows to the three tiers of government: Federal Government got the sum of N167.690 billion, States received N85.055 billion, the sum of N65.574 billion was allocated to LGCs and N67.806 billion was given to Derivation Revenue (13% Mineral producing States).”

Also, N31.2 billion from EMTL was distributed to the federal government (N4.6 billion), states (N15.6 billio), and local governments (N10.9 billion), while N1.3 billion was allocated for the cost of collection.

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In addition, the communique said N402.7 billion from exchange difference was shared with the federal government (N188 billion), states (N95.4 billion), and local governments (N73.5 billion).

The committee said N45.6 billion was given as 13 percent derivation funds.

FAAC said VAT and EMTL increased significantly, while oil and gas royalty, CET levies, excise duty, import duty, petroleum profit tax (PPT) and companies income tax (CIT) decreased considerably.

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