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.

“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.

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.

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.